Subsistence farmers by definition don't need loans. So you could see in theory how it could allow them to get out of subsistence farming. IE Buy tools they ca

Subsistence farmers by definition don't need loans. So you could see in theory how it could allow them to get out of subsistence farming. IE Buy tools they can't afford that would allow them to increase yield to pay for the loan and profit to send kids to school or something. But the reality is microfinance has always been available, called things like loan sharks. Yet they have stayed poor. So you need to think why this microfinance would work. Some microfinance bring training with the loan for instance. Lowing the interest % is the equivalent to giving them money direct, which has some evidence it works. But I tend to agree "microfinance" itself doesn't work.