Micro credit is the latest buzz word in financial circles. After pursuing a policy of chasing after the well-heeled crowd even major banks are now listening to the less endowed crowd.
What is micro credit? Micro credit can be used to refer to the alternative financial circles that have developed in order to serve the financial needs of the poor especially in the developing world but whose policies can be implemented in any setting. Grameen Bank was started by Professor Muhammad Yunus in Bangladesh. Today Grameen Bank is a model for many micro credit banks and lenders. What Yunus and others have come to learn is that the poor are good at paying back money, do not need hand outs but needed that little help on friendly terms in order to lift themselves from poverty.
Micro
credit lenders lend out small amounts of money to small-scale business ventures under less stringent terms than regular banks. In most cases these are the kind of clients who would not get a chance at the regular banks because more often than not they own no collateral to secure their loans. But with the success of Grameen and other s even major banks are no longer turning a blind eye to the prospect of participating in this new financial break through.
Universities are not to be left behind they have started special classes to teach about micro credit. Micro credit too has a huge presence on the web. Kiva.org is an online version of a micro credit organisation helping to link borrowers and lenders across the globe.
Universities are not to be left behind they have started special classes to teach about micro credit. Micro credit too has a huge presence on the web. Kiva.org is an online version of a micro credit organisation helping to link borrowers and lenders across the globe.
