From the BBC, writer James Melik talks about the possible death trap that microcredit borrowers could find themselves in.
Microfinance is not without its critics. Some argue that people can quickly sink into a cycle of debt, with many lenders charging exorbitant rates of interest.
Dr Qazi Kholikuzzaman Ahmad, chairman of PKSF, a body that monitors microfinance, describes microcredit as a "death trap" for the poor.
He explains how poor people often take up the loans without thinking of the consequences, and that 60% of borrowers take loans from several sources.
"There is no understanding that it might take 10 or 20 years to repay their loan," he says.
Furthermore, from the weekly repayments, some lenders deduct 10% of that payment for compulsory saving schemes - money the company then uses to lend to other people.
"Interest on repayments begin at around 15%, but it is a flat rate and can soon rise to anything between 40% and 100%," Dr Ahmad says.
Repayments are generally due on loans from the first week after they are taken out, which does not give the borrower enough time to establish any form of income-earning enterprise.
To cover those first payments, people often resort to taking out a further loan from a different company.