What Is Micro Finance

Micro Finance is the extension of very small loans (micro credit) to the poverty designed to stimulate entrepreneurship. These people lack collateral employment, stable and a verifiable credit history and can not meet even the least access to traditional credit. Micro credit is a part of micro finance, which is available for a wide range of financial services to the poor.

Micro credit is a financial innovation which is generally considered to have originated with the Grameen Bank in Bangladesh. There, he successfully made people extremely poor to engage in independent projects, allowing them to generate income, and in many cases, begin to create wealth and poverty exit.

Given the success of micro credit, many traditional banks are beginning to realize that these micro credit borrowers should more correctly be classified as Pre -viable, and thus, micro credit is increasingly the credibility the traditional financial industry and many traditional finance larger plan to finance micro-projects as a source of future growth, although almost all the major development organizations, discounted the likelihood of success of micro credit when it was started.