Who is the godfather of microfinance? (2024)

Who is the godfather of microfinance?

Muhammad Yunus (born 28 June 1940) is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize in 2006 for founding the Grameen Bank

and pioneering the concepts of microcredit and microfinance.

What is Muhammad Yunus known for?

Muhammad Yunus is a Bangladeshi economist, best known as the founder of the grassroots Grameen Bank, a financial institution (FI) that provides small loans to poor people without any collateral.

Who coined microcredit?

The term 'microcredit' was first coined by Professor Yunus who later reflected that the tiny amount he first lent, which was all needed to free 42 women from the clutches of loan sharks, was so small that it could even be called 'nanocredit' (Lyman, 2015).

Why is Muhammad Yunus a hero?

Economist and Nobel Laureate Muhammad Yunus has become internationally renowned for his revolutionary system of micro-credit—the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans—that has helped millions to escape poverty.

Who started microfinance in India?

It is worth mentioning here that the Self Employed Women's Association (SEWA) Cooperative Bank, operating in Gujarat with similar objectives since 1974, is arguably the first microfinance programme in India.

What Nobel Prize did Muhammad Yunus win?

The Norwegian Nobel Committee has decided to award the Nobel Peace Prize for 2006, divided into two equal parts, to Muhammad Yunus and Grameen Bank for their efforts to create economic and social development from below.

What did Muhammad Yunus invent?

Photography: Jared Leeds Muhammad Yunus won a Nobel Peace Prize for spreading the concept of microcredit—tiny loans to help poor people start businesses—via his Bangladesh-based Grameen Bank.

Who is the first microfinance?

Bandhan is the first microfinance company to start operation as a commercial bank.

Is microfinance good or bad?

Microfinance isn't perfect, and many of the concerns voiced about the industry are legitimate. It is, however, one of the more effective tools the world has for improving financial inclusion, which in turn can help to bring people out of poverty and assist in reaching the UN's Sustainable Development Goals.

Which is the birthplace of microcredit?

The origins of microcredit in its current practical incarnation can be linked to several organizations founded in Bangladesh, especially the Grameen Bank. The Grameen Bank, which is generally considered the first modern microcredit institution, was founded in 1983 by Muhammad Yunus.

Who won the Nobel Prize for microfinance?

Dr. Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance.

What is the controversy with Yunus?

Yunus faced 174 lawsuits in Bangladesh, 172 of which were civil cases, because the Awami League and Sheikh Hasina retained power following the election in 2014. Allegations included labour law violations, corruption, and money laundering, which Yunus alleged were politically motivated.

How did Yunus disobey Allah?

People of Nineveh had immoral ways of life and had turned away from Allah (God). Yunus told them to worship Allah and to forsake their evil ways, but they refused to listen. Yunus became disheartened and angry and decided to leave his people. He set off on a ship to move far away.

Who is the CEO of First microfinance?

Numanath Poudel - Chief Executive Officer - First Microfinance Laghubitta Bittiya Sanstha Ltd.

When was the first microfinance?

The today use of the expression microfinancing has it roots in the 1970s when organizations, such as Grameen Bank of Bangladesh with the microfinance pioneer Mohammad Yunus, where starting and shaping the modern industry of microfinancing.

Which microfinance company is best?

Who won the Nobel Prize 3 times?

Switzerland-based International Committee of the Red Cross (ICRC) is the only 3-time recipient of the Nobel Prize, being conferred with Peace Prize in 1917, 1944, and 1963. Further, the humanitarian institution's co-founder Henry Dunant won the first-ever Peace Prize in 1901.

How did Muhammad Yunus change the world?

Known as the “Banker to the Poor,” Dr. Yunus is a pioneer in the field of microcredit. This method, which provides small business loans to low-income individuals, was first pioneered by Dr. Yunus and Grameen Bank in Bangladesh in 1976 by loaning $27 to a group of women to start a bamboo stool business.

Who owns the Grameen Bank?

In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. Today Grameen Bank is owned by the rural poor whom it serves. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government.

What is the controversy with Grameen Bank?

A Norwegian documentary Caught in Micro Debt alleges Grameen Bank was dodging taxes. This results in criticism of Yunus at home and abroad. Yunus denies the allegations. Sheikh Hasina offers sharp criticism of Grameen Bank's microlending practices and likens Yunus to a "blood-sucker of the poor".

Who founded Grameen Bank?

By establishing Grameen Bank in 1983, Muhammad Yunus sought to realise his vision of self-support for the very poorest people by means of loans on easy terms. The bank has since been a source of inspiration for similar microcredit institutions in over one hundred countries.

What kind of person was Muhammad Yunus?

Muhammad Yunus (born June 28, 1940, Chittagong, East Bengal [now Bangladesh]) Bangladeshi economist and founder of the Grameen Bank, an institution that provides microcredit (small loans to poor people possessing no collateral) to help its clients establish creditworthiness and financial self-sufficiency.

Is microfinance still a thing?

For many Americans, if they've heard of microfinance at all, it's because they or a friend or family member have lent through the platform. As of 2023, according to a Kiva spokesperson, 2.4 million people from more than 190 countries have done so, ultimately reaching more than 5 million borrowers in 95 countries.

Who invests in microfinance?

The industry now attracts a growing numbers of individual and institutional investors. The great majority of these participate via professionally managed microfinance funds that channel money (often in the form of equity or loans) to microfinance institutions (MFIs).

How big is microfinance?

The global market for Microfinance estimated at US$200 Billion in the year 2022, is projected to reach a revised size of US$506 Billion by 2030, growing at a CAGR of 12.3% over the analysis period 2022-2030.