Microcredit

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Microcredit

A form of lending that originated in the 1970s with small loans made to very small enterprises in Bangladesh, called micro-enterprises, with the intention of alleviating high poverty levels. Microfinance institutions (MFIs) issue micro-loans that have higher-than-normal interest rates meant to cover the high costs associated with issuing small loans. Given that the purpose of microcredit is to be a poverty relief mechanism, individuals with low credit scores who lack capital and steady employment are then able to receive loans to develop their enterprises. See: Microfinance

Microcredit

The practice of making loans to extremely poor persons to help them rise from poverty through entrepreneurship. That is, one may make a loan of, say, $25 which gives someone the start-up capital necessary to make something small to sell. Microcredit loans are usually either interest-free or carry interest that does not compound. Additionally they offer flexible repayment plans; generally one is asked to pay anything one can so long as one pays something. Microcredit is most common in the developing world; it started in Bangladesh in the 1970s. See also: Grameen Bank, Mohammed Yunus.
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She said: "The extension of microcredit will underpin small businesses' economic recovery.
The federal government has launched a series of initiatives to revamp the country's microcredit system to allow small and medium-sized businesses and independent entrepreneurs to obtain low-interest loans more easily.
Yunus' simple idea of microcredits has revolutionized humanitarian assistance efforts," said President James Lacy, president of Rotary International.
Microcredits help hundreds of thousands of the world's poorest, especially women, move toward economic self-sufficiency.
Key words: Microcredit lending, empowerment, Middle Eastern women
5 million of the world's poorest families received a microloan in 2010-an all-time high, according to a report released today by the Microcredit Summit Campaign.
The development of microcredit programs provides an opportunity to strengthen local institutions.
WASHINGTON -- As part of the "Celebrate, Then Take Action" campaign, Grameen Foundation, the Microcredit Summit Campaign and RESULTS today launched a special blog to commemorate the 2006 Nobel Peace Prize ceremony and to encourage continued public support for microfinance and poverty eradication.
According to a report released by the Microcredit Summit Campaign, a program of the U.
16, 2011 /PRNewswire-USNewswire/ -- According to a report released by the Microcredit Summit Campaign, a program of the U.
NEW YORK -- The Microcredit Summit Campaign, launched in 1997 by representatives from 137 countries, will announce impressive results from a study of data covering the first eight years of the project and gathered from 3,100 microfinance institutions worldwide at a news conference on Wednesday, December 7, 2005, 1:30 pm EST, at the United Nations, Room C226, 100 UN Plaza, New York.
WASHINGTON, March 7, 2011 /PRNewswire-USNewswire/ -- More than 128 million of the world's poorest families received a microloan in 2009-an all-time high, according to a report released today by the Microcredit Summit Campaign.