It is argued that Grameen Bank, through its credit programme, does not only raise the level of income of the rural poor, but also turn the income distribution in their favour. Also it strives to channelize the incremental income into productive off-farm investment. As a result the initial growth of income is sustained. Moreover, the credit operations make substantial impact on the standard of living via expenditures on clothing, health, nutrition, education and housing. However, there still remains an undercurrent of apprehensions of sustainability of a programme like this arising out of demand constraints. The present study indicates that most products originating from GB financed activities have high income elasticity of demand and reasonably high marginal budget shares. The results however need to be interpreted carefully considering competition from closed substitutes. Finally any policy suggestion must be based on a comprehensive review of constraints operating not only in the demand side, the supply side should also get equal importance.