麻豆约拍

In India and Bangladesh there is a mounting crisis in the microfinance industry - which operates by lending small amounts to poor people.

Governments there have recently taken action to rein in high interest rates and unfair tactics from lenders.

Many borrowers cannot repay spiralling debts, and some even face intimidation when they miss making repayments.

The 麻豆约拍's Anbarasan Ethirajan reports from a village near Dhaka in Bangladesh.

Lesley Curwen spoke to Dr Qazi Kholiquzzaman Ahmad, who runs the PKSF Foundation in Bangladesh. It provides funding and advice for microfinance institutions. He said for a large majority of borrowers, the loans did not improve their financial lot. He warned microcredit can be a 'death-trap' for the poor. Some people end up destitute, and others face threats and violence from lenders.

So have multilateral organisations and western governments been wrong to push for a more commercialised version of microcredit?

Lesley Curwen talked to Gregory Chen, from CGAP, which is housed at the World Bank and which has led the way in the spread of microcredit. He expressed concern that 'credit has gone too far' in India and typical borrowers have as many as four loans from different sources. But he argued that poor people still need access to savings and loans like anyone else.