Microcredit, which are an integral part of the expansion of micro-lending very small (micro) living in poverty in the world in business development. profitable business model in history
Community banks, NGOs and local business groups and credit unions have shown the world that the victory of the micro-loans, borrowers and lenders Micro is one of the most effective strategies for reducing poverty.
Despite the success of microfinance institutions, expect only about 2% to 500 million in the world of small business access to financial services.
At Grameen Bank, a synonym for Micro offers small loans to poor people without collateral. System of Grameen Bank loans are very simple, but effective. The group is in a loan application, the pressure group “is used within the group to ensure that borrowers and is based on prudence in financial transactions with a strict control that the last payment, and borrowers development consistent with good credit.
The business model that most microcredits. Yes, the debt of solidarity in small groups and encourage group members to recover from each other. Pioneer solidarity loan, described by Dr. Muhammad Yunus of Grameen Bank in Bangladesh, the dynamics of lending through solidarity groups as follows:
loan application to the moral responsibility of each team member in the loan. As a member of the group in trouble, usually a group trying to help. “
The financial resources of their small savings in capital, loan funds and effective institutional development to include. Basis for the development and micro-credit loan to Paraguay (Grameen Trust in 1995) is growing. MFIs such as Grameen Bank in successful sales training / study programs, suppliers and financial institutions.
This versatile tool savings chit funds and loans. Each group of tags or otherwise, the peer group. This is a collection of loans. The reason for criticism, but microfinance institutions. For example, loans, lenders for collectors of poor and non-formal and informal. For loans and grants to charities. Loans more sustainable farm families in financial difficulties and repay loans at the end.