Microcredit is a concept that evolved as early as the 18th century but gained momentum only after the establishment of the Grameen Bank in Bangladesh by Prof. Muhammad Yunus in 1976. By lending amounts as small as $5 to women involved in making bamboo stools in Jobra village out of his own resources, Prof Yunus proved that micro loans can effectively tackle and reduce poverty. Over the years Grameen bank has disbursed several such small loans and assisted poor entrepreneurs to afford low cost credit to improve their small scale business units. Now microcredit programs have spread across the globe and are regarded as the best way to alleviate poverty.
Modified on: Fri, 25 Apr, 2014 at 7:08 PM
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