A pioneer of the industry has claimed that investors that are in search of making profits from microfinance are no wiser than loan sharks.

Nobel laureate, Muhammad Yunus said that he is really worried that investment funds are viewing microfinance as a way to get the best profits that can be made.

The Bangladeshi economist said that poor people should not be offered as mere opportunity to cash in on.

Now, microfinance institutions are trying to mark a way into the loan-sharking business and the idea of entering into the vulnerable domain of people's lives and bait them with new schemes is just so devastating.

Yunus, who had been awarded the Nobel Peace Prize in the year 2006 for his lifetime's work in making financial services accessible to poor people, gave the remarks in reply to a rising fashion for microfinance suppliers, in order to raise money by selling shares to shareholders.

Yunus is predominantly critical of India-based supplier, SKS Microfinance, which recently announced its plans regarding raising $250 million through an initial public offering.

He said that conventional business is all about making profits by sucking out the pitiful lot of populace. He said that there is a need to bring drastic change in that outlook of doing business.