As one of the largest poverty interventions microfinance has been covering a significant proportion of people in poverty for a long period of time. In recognition of its poverty alleviation potentiality and bringing peace in borrowing households and their community, microfinance has been awarded with world famous awarding bodies. Besides recognitions, microfinance has been facing strong criticism for the adverse implications of this development program on different economic and social aspects of the community it serves. This paper depicts the development concept of microfinance and its genesis. It identifies the claimed positive impacts and the criticisms that the conventional microfinance has been facing, and proposes an alternative approach of equitable development through microfinance network for the economically and socially marginalized community that can avoid most of the adverse consequences of conventional microfinance.