The microfinance industry has had its fair share of criticism for its effectiveness as a poverty alleviation tool. Some have argued that microfinance simply does not work, as it undermines people by burdening them with unsustainable debt and has no zero impact on poverty alleviation.
On the other hand, there are some who suggest that although the impact of microfinance hasn’t been transformative in moving people out of poverty, it has given people more freedom of choice and has also helped them to be self-reliant.
Maria May, contributor of NextBillion, explains the six questions that every microfinance doubters should ask themselves before criticising microfinance’s value as a development tool.
Read the full article written by Maria May published on NextBillion here.