The disbursing of small credit amounts is hailed as prime pathway out of poverty. But is it really? The case for their high interest rates is poor, the claim of high repayment rates doubtful. I found many former customers entrapped in a vicious cycle of loans. Lastly, micro-credit loans played their part in changing the consumption pattern of rural people, and, in passing, reshaped their life style by integrating them with the international capitalist system.