BANKING AFFAIRS

Detailed explanation-1: -Modern microcredit is typically attributed to the Grameen Bank model, developed by economist Muhammad Yunus. This system started in Bangladesh in 1976, with a group of women borrowing $27 to finance the group’s own small businesses.

Detailed explanation-2: -The modern use of the expression “microfinancing” has roots in the 1970s when Grameen Bank of Bangladesh, founded by microfinance pioneer Muhammad Yunus, was starting and shaping the modern industry of microfinancing.

Detailed explanation-3: -Introduction Microfinance initiated by a Bangladeshi banking innovator Professor Muhammad Yunus and it becomes an important development tool to alleviate poverty, women empowerment and promote entrepreneurship in the developing world.

Detailed explanation-4: -The genesis of formalized microfinance in Bangladesh began during the Bangladesh famine of 1974. Muhammad Yunus, then a professor at the University of Chittagong visited Jobra. There, he learned that the basket weavers relied on exploitative money lenders to buy their raw materials.

Detailed explanation-5: -The main purpose of microfinance programs is to render financial services to rural women through the mechanism of generating savings as well as delivering microcredit. DISA operates the microcredit activities in 8 districts of Bangladesh covering 1699 village organizations (VO) under 37 branches.