Most microcredit institutions disapprove of borrowing to buy consumption goods—some actually put a lot of effort into making sure that their money gets spent on some income-earning asset. Padmaja, on the other hand, is happy as long as the clients use the money to realize any of their long-term goals. Thinking about long-term goals and getting used to making short-term sacrifices in order to get there are the first steps, she thinks, toward liberation from one of the most frustrating aspects of poverty.
