Major impacts of microfinance on the poor: snapshots from Bangladesh

Microfinance has, by now, reached a total of over 60% of all poor households of Bangladesh, and 37% of all households (World Bank, 2005). There are, however some controversies relating to the indebtedness for the microfinance receivers and the contribution of microfinance in their socioeconomic conditions. Some say it is making poor people debt trapped, on the other hand, some say it is benefitting the poor. Well, there are no polar extremes. Throughout this paper we will be examining, to which extent the arguments are feasible, and finally develop some measures to increase the performance of microfinance.