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The aim of Microcredit is to help people who are not bankable or pre-bankable in that they have no collateral (assets that secure a debt obligation eg. mortgage; jewelry), steady employment or credit history to make them creditworthy

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Introduction

Microcredit The aim of Microcredit is to help people who are not bankable or pre-bankable in that they have no collateral (assets that secure a debt obligation eg. mortgage; jewelry), steady employment or credit history to make them creditworthy. It helps the poor create an income to escape poverty and build wealth to become borrowers. ...read more.

Middle

Microcredit is gaining in stature and credibility in the modern day finance industry, thus leading to finance organizations perceiving the use of Microcredit as a possible source of growth. When Microcredit first started, international organizations discredited the possibility of success. A real-world example of Microcredit is Muhammad Yunus and the Grameen Bank. ...read more.

Conclusion

The loans helped the poor create small income avenues (eg. making bamboo furniture to sell and earn income). Now, the bank offers microcredit on a much larger scale; it offers housing loans and well as financing for fisheries and irrigation projects, textiles and cottage industries for example. In conclusion, microcredit provides the means for the impoverished to start earning an income (albeit small) on their own and to gain wealth, thus becoming creditworthy. ...read more.

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