9. Does microfinance reach the poorest people?

Sometimes it does, but most often not. Old or sick people need other forms of help than a small loan. And some people live in such a predominating poverty that they would use a loan to satisfy their basic needs and thus risk to getting into a debt trap. In these cases an integrated support package in the fields of health, housing, education and employment, might be more appropriate.

Many MFIs target only the "active" or "productive" poor, people already running an economic activity. Those who do not, are thus excluded.

Finally, credit programmes for poor people often ask people to form a group and guarantee each others loan. The poorest of the poor are sometimes excluded by others or lack social contacts or self confidence to form a group themselves.

But in certain cases successful programmes have been developed for the (almost) poorest of the poor, with loans of only some € 10.