Sari seller: Microloans have enabled Sabira Khanam to go into business in Bangalore. Technology that lets cell phones handle banking transactions could help microlending reach more people. Credit: Michael Rubenstein

In Bangalore's Avalahalli neighborhood, a bank account and microloans have transformed the life of 32-year-old Sabira Khanam. Her first loan, of 10,000 rupees (about $200), allowed her to experiment with a small-scale kerosene distributorship. A second, smaller infusion financed her sister's wedding. A third, of 20,000 rupees, launched a business sewing sequined saris for sale to local women. Khanam, who lives alone and has disabilities stemming from childhood polio, is now able to rent a large masonry house. And she got the cash to do this without resorting to local loan sharks, who charge 2 to 10 percent monthly interest for long-term loans--and much more for small, short-term loans.

Select from the choices above to read the entire article.