ela bhatt, who runs the much smaller nonprofit sewa bank, says people at the very margins of the economy need much more than credit, because many of their most basic needs are not met. >> there are so many gaps, so many leaks in the life of the poor, and for them livelihood is very essential. unless we have something really concrete to improve the livelihood conditions so that they have more income, all these have to be done, otherwise only microcredit is just flimsy. >> reporter: in other words, she says loans should be used to finance productive activities that generate new income. in andhra pradesh the government says two-thirds of the loans were used for everyday households needs. bhatt and many development exrts say commercialization has distorted the central mission of microlending. but basix's mahajan says there's simply not enough money in the nonprofit or charity world. >> the capital investment that's required to meet all the, you know, unmet needs of poor people in this country and the world, for all kinds of things, it runs into trillions of dollars and you need, therefore, m