The success and efficiency of microcredit and microloans is controversial and constantly debated. With microloans, borrowers can apply for up to $50,000 in funding. Its first and primary lending strategy is microloans secured through pawned objects. Banks were encouraged to give microloans to farmers. On average 160 microloans are issued in Banco Palmas alone. As of 2009 an estimated 74 million people held microloans that totaled US$38 billion. Dozens of studies have looked at the experience of people who received microloans. Often, microloans simply have a crippling effect on the individual. TDB also is the longest running provider of microloans in Tonga. Microloans in the U.S. context is defined as the extension of credit up to $50,000.