Micro-Credit against Poverty Term Paper Example | Topics and Well Written Essays - 2750 words

Micro-Credit against Poverty - Term Paper Example He is the founder of the concept of microcredit through which the small amount loans can be utilized at an affordable interest rate for transforming and improving the lives of the poorer people especially the women section. The banking system has existed in the economy for a long period of time which was appreciated by many people as well as blamed by many but still, the banking system played an important role in the economy. Muhammad Yunus has struggled and made arrangements for providing loans and credit to the poorer or the weaker sections of people. The pioneer of the concept of microcredit and microfinance has extended its help and support to millions of people that are in need of loans and assistance. There are many facilities provided to the people for availing loans from the Grameen bank and easily repaying the loan. Microcredit is the concept that has been developed for providing loan and assistance to the weaker section of the people in the economy through the improvement in the lives of the people by motivating and encouraging them to become self-employed. Microcredit is commonly known as the microfinance or micro banking and this concept explains the process of extending of loans to the people without any collaterals and this type of loan is provided to the nontraditional borrowers which mainly includes the poor and the weaker sections of the people in the undeveloped and in the rural areas(Chemin, 2008). The concept of microloans or the microcredit first emerged in Bangladesh and the development and the success of the concept have to lead to the widening and the adoption of the concept in other less developed, developing and underdeveloped countries of the world which includes Indonesia, Bolivia (Roodman and Morduch, 2014). Through the utilization of the microloans, the borrowers are able to purchase the livestock for starting their own businesses.