Small local microlending models used widely in India and Bangladesh are running into problems and showing up the dark side of the model.
They have been a cheaper alternative to loan sharks.
Half of all borrowers are avoiding payments and there have been quite a lot of suicides. The industry is plagued with usurious interest rates and multiple loans to the same borrower. Evidence that it is lifting the poor out of poverty is questioned with women selling wedding jewellery to pay installments?
Greed will always cause problems.