Yeah, those schemes tend to work a little better. If the recipients of mircro-financing are subject to the risks associated with taking credit, they tend to invest it better. For instance, the mobile micro-loans given by Safaricom (http://www.safaricom.co.ke/personal/m-pesa/do-more-with-m-pe...) are actually given by a bank and defaulters are black-listed for loans as little as Ksh. 500 (~ 5 USD).

These schemes create opportunities whilst reminding people that poor decision-making has consequences. The only reason that this works is because these schemes are run by banks rather than non-profits. Perhaps there's a little room for more regulation around the margins these institutions should make off of these loans... but at the same time they're opening up credit lines to people who would have never had them.