Microcredit

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Related to Micro credit: Microfinance

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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Rural poverty reduction is considered a key to sustainable development worldwide; therefore, it is important to investigate that whether Punjab Rural Support Program (PRSP) has extended micro credit facilities in the rural district Mandi Bahauddin or not?
Little research had been carried out on the importance of the behavioral intention of micro credit lenders.
AGFUND and MSC collaborated in establishing the regional conference of micro credit in the Middle East and North Africa in Amman, Jordan in 2004, which was inaugurated by Prince Talal, and Queen Rania Al-Abdullah, which was the most successful conference that specializes in micro credit at the level of the Arab countries and was attended by more than 800 participants .
These results negate the statement by Mosely and Hulme (1998) that micro credit does not generate assets but only increase income to the level to meet daily expenses.
-- Man Sang International expands into the new Micro Credit Business in Mainland China
It operates in the villages through its various programmes such as Self Help Groups (SHGs), Joint Liability Groups (JLGs), Enterprise Development Loan, Urban Micro Credit, Dairy Loan and Agriculture Transportation Loan.
The Microcredit Insurance Cooperative Fund (Takaful) is formed by a specified percentage donated from the credit provided by a group of eight commercial banks insuring micro credit operations financed by The Central Bank of Sudan under a partnership model, using partnership (musharaka) and speculation (mudaraba) modes of finance.
Prince Talal noted that Agfund has embarked on the initiative of launching banks for extending micro credit to the poor with a strategic partnership with Bangladeshi Nobel laureate Professor Mohammad Younus, father of the Grameen Bank movement.
It is often difficult to establish Micro Credit in many countries because of traditional banking regulation.
Micro credit and other community-based projects play a role in alleviating poverty and suffering ("Tilting at Windmills," by Charles Peters, December 2006).
Members of Coventry Results, flaunting pink hair and bright clothes, met the MP at the Lady Godiva statue in Broadgate to ask him to make micro credit available to the world's poorest people.