although lending to the grassroots and SME can provide tremendous benefits to those who can make good use of the lending, too much lending will inevitable cause more harm than good. parts of the lending were not used for productive investment, some were spent on consumer product, and some of those that were invested in commodity production (some in so-called One tambon One product project) led to oversupply of similar products in the country. although these lending have led to increases in NPL for some of the SFI, the extent of the increases have not been large. the main reason is that most ot these lendings are of the relatively modest amounts, and when the payments are due, borrowers can normally borrow from somewhere (such as informal money lenders) to repay the loan and then take out a new loan again. So the balance sheet of the SFI are not too adversely affected. however, the indebtedness of the grassroots gradually increases