The present dispensation of microfinance to the new micro entrepreneur is grossly unfair. The amount of funding needed is comparatively small, yet it can make lot of difference. They generally operate under the threat of a stiff recovery terms in the event of enterprise failure due to reasons beyond their control. The most acute constraint of mocrofinance service providers on the other hand is the loan capital. A pragmatic recovery approach to microfinance services would ensure the financing flow to the poor, which can in turn prevent the depletion of assets and resore livelihoods. - Reproduced.