Microfinance, initially hailed as a solution to poverty in Asia, is facing scrutiny for failing to meet its ambitious goals. The core issue lies in lending to households without the means to reliably repay loans and generate sustainable income. For the very poorest, incurring debt can be counterproductive, exacerbating financial vulnerability rather than providing a pathway to self-sufficiency. This suggests a fundamental mismatch between the financial product and the needs of those it intends to serve. Critics argue that the focus on repayment schedules overlooks the precarious economic realities faced by impoverished communities. Consequently, microfinance risks trapping borrowers in cycles of debt, ultimately hindering their progress. A reassessment of lending practices and borrower suitability is urgently needed to ensure microfinance truly empowers, rather than further burdens, Asia’s most vulnerable populations.