Economics Report.Microfinance is a fast-growingpart of the financial industryin many developing countries.Micro lenders give small loansto poor people to startor expand businesses.Microcredit offers a chanceto improve lives and reduce poverty.But officials in Andhra Pradesh,in southern India,are investigating if debt collectionsare linked to a seriesof suicides among borrowers.Reddi Subrahmanyamis a rural development officialin that state.REDDI SUBRAHMANYAM: "The feelingin the community isthat many of these deathshave occurred immediatelyafter the recovery agentsof the microfinance institutionshave either visited the houseor have done something insulting."Reports of corruption and abuseshave led to emergency measuresin Andhra Pradeshto ban some collection methods.These rules also aim to limitcostly feesand high interest rates on loans.The Asian Development Bank saysmicrofinance institutionsin the Asia-Pacific area chargeinterest of thirtyto seventy percent a year.Charges can be even higherwhen other costs are added.But micro lenders also facehigher operating costs comparedto traditional lenders.Groups like the Asian Development Bankoppose limits on interest ratesbecause of these high business costs.Economist Muhammad Yunuswon the Nobel Peace Prizein two thousand six for his workwith microfinance.In the nineteen seventieshe started what becamethe Grameen Bank in Bangladesh.Grameen says it charges twenty percentfor general loans,less for home and student loans.The poorest of the poor pay no interest.But enough microfinance borrowersare paying enough for their loansto create a profitable business.MFTransparency is an organizationthat works with microfinance lendersto make pricing policies more clear.The group is based in the United States.Chief executive Chuck Waterfield sayseasy credit can lead some peopleto borrow more than they can repay.He says abuses affect onlya small percentage of India'sfifty million microfinance borrowers.One of the clients of MFTransparencyis the Microfinance Institutions Network.That group is fightingthe new rules in Andhra Pradesh.India's biggest microfinance companyis SKS Microfinance.In its last budget yearit reported profits of eighteen percent.SKS began selling stockon the Bombay Stock Exchange in August.New York University economistJonathan Morduch saysthe microcredit industry is youngand there are problems.But he says too much regulationcould kill it.And that's the VOA Special EnglishEconomics Report,written by Mario Ritterwith Kate Woodsome.