Microcredit. This article is specific to small loans. For financial services to the poor, see Microfinance. For small payments, see Micropayment. Microcredit is part of microfinance, which provides a wider range of financial services, especially savings accounts, to the poor. Modern microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983.[3] Many traditional banks subsequently introduced microcredit despite initial misgivings.
The United Nations declared 2005 the International Year of Microcredit. As of 2012, microcredit is widely used in developing countries and is presented as having "enormous potential as a tool for poverty alleviation. History[edit] Early Beginnings[edit] Ideas relating to microcredit can be found at various times in modern history. Modern microcredit[edit] Nobel laureate Muhammad Yunus, the founder of Grameen Bank, which is generally considered the first modern microcredit institution.
Principles[edit] Economic principles[edit] Microfinance. Community-based savings bank in Cambodia. There are a rich variety of financial institutions which serve micro-entrepreneurs and small businesses. Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services. The two main mechanisms for the delivery of financial services to such clients are: (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group.
In some regions, for example Southern Africa, microfinance is used to describe the supply of financial services to low-income employees, which is closer to the retail finance model prevalent in mainstream banking. Microfinance is a broad category of services, which includes microcredit. Microcredit is provision of credit services to poor clients. Background[edit] Purpose[edit] Microfinance and poverty[edit] Saving up Saving down. Microfinance. Kiva (organization) Since 2005, Kiva has crowd-funded more than 1 million loans, totaling more than a half a billion dollars, at a repayment rate of 99 percent.[4] As of Nov. 2013, Kiva was raising about $1 million every three days.[3] The Kiva platform has attracted a community of more than 1 million lenders from around the world.[5] Kiva operates two models—Kiva.org and KivaZip.org.
The former model relies on a network of field partners to administer the loans on the ground.[6] These field partners can be microfinance institutions, social businesses, schools or non-profit organizations.[7] KivaZip.org facilitates loans at 0% directly to entrepreneurs via mobile payments and PayPal. In both Kiva.org and KivaZip.org, Kiva includes personal stories of each person who needs a loan because they want their lenders to connect with their entrepreneurs on a human level.[8] Kiva itself does not collect any interest on the loans it facilitates and Kiva lenders do not make interest on loans. Microcrédit. Un article de Wikipédia, l'encyclopédie libre. Le microcrédit consiste en l'attribution de prêts de faible montant à des entrepreneurs ou à des artisans qui ne peuvent accéder aux prêts bancaires classiques. Le microcrédit se développe surtout dans les pays en développement, où il permet de concrétiser des microprojets, favorisant l'activité et la création de richesses, mais se pratique aussi bien dans les pays développés ou en transition.
Selon l'ONG The Microcredit Summit Campaign, le microcrédit représentait 11 milliards de dollars[1], et comptait 190 millions de clients fin 2009. Parmi lesquels 140 millions de femmes (74 %), ou encore 128 millions de clients les plus pauvres, parmi lesquels 105 millions de femmes les plus pauvres (82 %)[2],[3],[4]. En France, 12 000 microcrédits ont été accordés durant l'année 2010, pour des prêts de 6 000 euros maximum, avec un taux d'intérêt d'environ 9,7 %, et un taux de remboursement de 94 %[5]. Description[modifier | modifier le code] Microcredit organizations - ค้นหาโดย Google. Microcredit Summit Web Links/Enlaces/Liens. Unnamed. Grameen Bank | Banking for the poor - Credit Delivery System. Grameen Bank Credit Delivary means taking credit to the very poor in their villages by means of the essential elements of the Grameen credit delivery system.
Grameen Bank credit delivery system has the following features: The underlying premise of Grameen is that, in order to emerge from poverty and remove themselves from the clutches of usurers and middlemen, landless peasants need access to credit, without which they cannot be expected to launch their own enterprises, however small these may be. The mode of operation of Grameen Bank is as follows. A bank branch is set up with a branch manager and a number of center managers and covers an area of about 15 to 22 villages.
Loans are small, but sufficient to finance the micro-enterprises undertaken by borrowers: rice-husking, machine repairing, purchase of rickshaws, buying of milk cows, goats, cloth, pottery etc. Grameen Bank | Banking for the poor - Definition. What is Microcredit? Much of the current interest in microcredit stems from the Microcredit Summit (2-4 February 1997), and the activities that went into organizing the event. The definition of microcredit that was adopted there was: Microcredit (mI-[*]Kro'kre-dit); noun; programmes extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families. Definitions deffer, of course, from country to country.
Some of the defining criteria used include- size - loans are micro, or very small in size target users - microenterpreneurs and low-income households utilization - the use of funds - for income generation, and enterprise development, but also for community use (health/education) etc. terms and conditions - most terms and conditions for microcredit loans are flexible and easy to understand, and suited to the local conditions of the community.
Source : The Virtual Library on Microcredit. Grameen Bank | Banking for the poor - What is Microcredit. The word "microcredit" did not exist before the seventies. Now it has become a buzz-word among the development practitioners. In the process, the word has been imputed to mean everything to everybody. No one now gets shocked if somebody uses the term "microcredit" to mean agricultural credit, or rural credit, or cooperative credit, or consumer credit, credit from the savings and loan associations, or from credit unions, or from money lenders. When someone claims microcredit has a thousand year history, or a hundred year history, nobody finds it as an exciting piece of historical information.
I think this is creating a lot of misunderstanding and confusion in the discussion about microcredit. We really don't know who is talking about what. This is a very quick attempt at classification of microcredit just to make a point. Classification can also be made in the context of the issue under discussion. Microcredit data are compiled and published by different organizations. Grameen Bank | Banking for the poor - Three C's of Credit. Grameen Bank | Banking for the poor - Credit Lending Models. Microfinance institutions are using various Credit Lending Models throughout the world. Some of the models are listed below. Associations : -------------------------------------------------------------------------------- This is where the target community forms an 'association' through which various microfinance (and other) activities are initiated. Such activities may include savings. Associations or groups can be composed of youth, or women; they can form around political/religious/cultural issues; can create support structures for microenterprises and other work-based issues.
Bank Guarantees : -------------------------------------------------------------------------------- As the name suggests, a bank guarantee is used to obtain a loan from a commercial bank. Credit Unions : -------------------------------------------------------------------------------- A credit union is a unique member-driven, self-help financial institution.