Microfinance Institutions in Poverty Alleviation: A Case of the Blind Leading the Blind?

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This article takes credit finance into the level of microfinancing as an anti-poverty instrument. Given proper guidance as to its viability and sustainability, microfinancing institutions (MFIs) can be a major source of credit for poor households. Unless some policy measures have been instituted by the government to rescue non-viable MFIs from possible collapse, microfinance can turn into a case of two blinds leading each other.