The Idea of Microfinance

"Poverty is not created by the poor. It is created by the structures of society and the policies pursued by society. Change the structure as we are doing in Bangladesh, and you will see that the poor change their own lives. Grameen's experience demonstrates that, given the support of financial capital, however small, the poor are fully capable of improving their lives." - Banker to the Poor
- Muhammad Yunus, Grameen Bank, Founder


Microfinance is a provision that brings financial services to low income clients especially to the poor women who does not have access in banking and other related services to help them fight poverty. This objective that Muhammad Yunus of Grameen Bank had started was a great success in helping those people in need. Microfinance gives loan to poor women because many studies have shown that access to financial services has improved the status of women within the family and the community. Also, it makes women more assertive, confident and visible in the eyes of the community.

In Bangladesh, Microfinance became a success in helping the poor women and their families. Some of the results of Microfinance include the following:
•It helped the poor meet their basic needs for survival and protect them against risks;
•The use of financial services by low-income households results to an improvements in household economic welfare and enterprise stability;
•Microfinance helps to empower women, hence promoting gender-equity and improving household well-being

These are only some of the benefits I’ve found due to Microfinance. Microfinance won’t necessarily stop poverty in our world, but it will help reduce the number of poor and unemployed people. Banks don’t really give small loans to the people like Microfinance because there would be lesser interest and lesser income for the banks as opposed to the big loans the banks give wherein they’ll earn bigger as well. But if we consider these kinds of services rather than always think of the money we will receive, we might help not only the poor families themselves but also help our country in eliminating the number of the poor citizens in our country. I really am favor of the Microfinance that Bangladesh had started because it not only helps the poor on their daily needs, but also empowered women as it favors women to improve their status in their household.