Micro-credit: An approach to rural development
Micro-credit is the term, which is related to banks, finance
and economics of a country. It was first introduced by a banker named Professor
Muhammad Yunus. Micro-credit is the process of giving short and long-term loan
to the poor people. In the developed countries, people can get different types
of huge loan from different financial organisations and even from the
government. They can use that loan-money for their business purposes, for
constructing their residential
buildings, for buying a brand car and many more.
But in the poor and developing countries like ours, we cannot get a huge amount
of money from any financial organisation and even not from the government.
Living in the third-world countries we cannot afford to run a big business nor
can we execute an industry because most of us live below the poverty line. On
the other hand, we can't revive our cottage industries, small industries,
handicrafts and our cultural products due to the lack of proper finance. That
is why our national progress is retarded and not on the increase. In this case
Grameen Banks and some other banks have come forward to take valiant and
challenging steps for the development of our country. These banks give the poor
the opportunity of microcredit for their own development. Proper steps are
taken to ensure the best use of money lent to the poor. The system of lending
money of micro-credit process is so flexible that people can pay money from
their profit. So, this process has gained popularity in our country
particularly in rural areas and it has been acclaimed by many western
countries. They are now following the micro-credit system to alleviate poverty
of their countries. So, with the
micro-credit system, the poor can be able to lessen poverty and change their
lots. Gradually they can develop and play a vital role in the economical
development of the country.
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Grameen Bank: A bank for the poor
A bank is a financial institution that provides people with
money for their economic development as well as takes money from them as deposit.
But the Grameen Bank not only provides money but also arranges training for the
rural poor people. Most of the efficient banks are not willing to lend money to
the poorer section of the society whereas the Grameen Bank gives loan to the
poor and to the downtrodden. Dr. Yunus, professor of Economics Department in
Chittagong University, is the pioneer of micro-credit and the founder and
managing director of the Grameen Bank. In 1976 Professor Yunus began a
research-work about poverty alleviation and later established the Grameen Bank
to help the poor people. The project first started working in a village of
Chittagong district. Afterwards the
Government declared the Grameen Bank in
1983. Now there are a lot of branches of the Grameen Bank all over the country.
This bank gives loan especially to the poor rural women. By proper using of
that money, the poor women can change their lots. They can establish poultry
firms and by selling eggs they can earn money to support the family. Before
borrowing money the interested people are to make 5-6 groups of workers, each
having five members. They should also have a centre, where the bank will work
to give loans and receive payment of loans. Two or three thousand taka is given
to each member to invest the money in a profitable business. People are to pay
a small interest to the bank and are to follow certain rules and procedures of
the bank. Besides giving loan
and training, the bank also encourages the people
to school their children, follow family planning etc. It cannot be denied that
the Grameen Bank plays a vital role in alleviating poverty. Now many
impoverished people coming above the poverty line are eating three square meals
instead of one and are living with family members happily. To acknowledge this
contribution, the Grameen Bank and Dr. Yunus recently have been awarded Nobel
Peace Prize. It is undoubtedly a great achievement and a tremendous success in
banking activities.
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