what are some criticisms of microfinance 
while some microfinance interest rates are lower than conventional banks rates critics have charged that these operations are making money off the poor 15 also many major financial institutions and other large corporations have launched for profit microfinance departments raising concerns that out of a desire to make money these larger bankers will charge higher interest rates that may create a debt trap for low income borrowers 20 and some have argued that individual microloans aren t enough money to provide a realistic path to independence the bottom linemicrofinance is a form of banking service provided to low income individuals or groups who otherwise wouldn t have access to financial services institutions most often lend amounts of 50 to under 50 000 but they may also offer checking and savings accounts and some deliver financial and business education the goal of microfinance is to ultimately give impoverished people an opportunity to become self sufficient some criticisms of the microlending industry as it s grown include excessively high interest rates charged on the small loans extended profit motives at odds with the original intent of helping the poor and loans so limited they can t really make their impoverished borrowers self sufficient 