Uganda and India have further institutionalized the growing political popularity of microfinance by attempting to regulate it.  A closer look shows how government intervention can facilitate or hinder the growth of these programs.  

Uganda’s government has chosen to simply limit the interest rate creditors can charge to keep up with inflation.  This effectively kills any profit motive that might have existed in a financial sector where it is already difficult to convince lenders to give out loans with high fixed costs and low yields.