As Professor Yunus has often said, “You need a dollar to earn a dollar, and the poor do not have access to that first dollar. Grameen will supply that first dollar to the very poor based on trust.”
Microfinance is widely acknowledged as an effective and sustainable solution in the fight against poverty. Microfinance is the supply of small loans and other basic financial services to the poor. Borrowers use these small loans to start, build and run small businesses. Through these income generating activities and the use of other services offered by Grameen America, such as savings programs and financial education, borrowers are able to increase their assets, protect themselves and their families against risks, and ultimately attain economic self-sufficiency. Microfinance services provided by Grameen America include collateral-free lending, savings programs, credit establishment services, financial education and remittance services.
Microfinance taps into the entrepreneurial spirit of poor individuals who would normally be prevented from pursuing business opportunities because mainstream banks will not make loans to people who lack collateral and minimum credit scores. By giving these “unbanked” individuals access to basic financial services, microfinance decreases their dependency on predatory lenders and empowers them to use entrepreneurship and self-employment to increase their wealth and lift themselves and their families out of poverty.
Visit our useful links section to learn more about microfinance.
|
