The alignment of microfinance programs with the context and expectations of recipients is critical to ensuring clients' satisfaction and desired program outcomes. This study sought to investigate the extent to which the objectives and design of the BRAC microfinance program match the expectations, context and characteristics of female borrowers in a rural agrarian setting in Uganda. Quantitative and qualitative survey methods were used to obtain socio-demographic, personality and microenterprise (ME) characteristics of existing and incoming borrowers and to obtain information about the microcredit program. We found that BRAC uses a modified Grameen-like group lending model to provide small, high interest rate production loans and follows a rigorous loan processing and recovery procedure. BRAC clients are mainly impoverished subsistence farmers who derive income from diverse farming and non-farm activities. The major reason to borrow is to meet lump-sum monetary needs usually school fees and for investment in informal small non-farm business activities. Many borrowers use diverse sources of funds to meet repayment obligations. Defaulting on loans is quite low. The stress caused by weekly loan repayment and resolution of lump sum cash needs were identified as reasons for women to stop borrowing. The limited loan amounts, the diversions of loans to nonproduction activities, the stages of the businesses and the weekly recovery program without grace period may limit the contribution of these loans to ME expansion and increase in income.