We analyses some issues in the functioning and performance of microcredit under the Kudumbashree programme in Kalikavu Panchayat, Kerala. These issues are related to the low scale of financing in the absence of formal financial supports through NABARD's bank linkage and low level of income generation activities. The NABARD's bank linkage helps in financing of microenterprises. However, most microenterprises are not economically viable to undertake operation profitably. This work throws light on some of the issues raised regarding the microcredit as an alternative. This analysis gives insight...