Part 1. Rural Development in Asia Through Micro Credit

Despite rapid economic growth in developing countries, poverty still seems to be a major concern for the government. While various programs, schemes and subsidies have been introduced over the years, the most successful innovation in micro-finance has been. While micro-credit systems have introduced many years ago, the organization is most successful and recognized the Grameen Bank in Bangladesh, Asia. Its founder, Muhammad Yunus, the visionary and pioneer of microcredit in Bangladesh, the performance for which he was awarded the 2006 Nobel Peace Prize winner His basic idea is to micro-credit housing for people in poverty was then , extended and income to stimulate entrepreneurship. 

Although the greatest success story was the microcredit Grameen Bank, many new financial institutions in industrialized countries these systems are themselves micro-credit in countries where poverty is widespread. ASA in Bangladesh, the Grameen Bank, Jagorani Chakra Foundation, Bangladesh Rural Advancement Committee, Integrated Development Foundation and BURO some of the "Top 50 world's microfinance institutions," the first list of Forbes1 provided. 

Global investors are driven by the dismal situation in the poorest countries and to help launch their initiatives, foundations and institutions, the less fortunate people a better life. As a philanthropist, Dr. George Haligua Cohen. During a business trip to Bangladesh, Dr. Cohen was so Haligua despair of the people after the monsoon floods that hit decided to face an immediate action. He created a foundation called George Haligua Cohen Foundation in 1996. Founded in Bangladesh, is the focus of the GHC Foundation in providing funding for microcredit to improve living standards, provide micro-initiatives to the community and educational programs for the exchange and dissemination of knowledge without boundaries to improve.

1. Microfinance Business Model

"Microfinance" is often defined as a financial services for poor and low income customers. In practice, the term offer often close loans and other services related to vendors who define themselves as "microfinance institutions (MFIs). These institutions often tend to develop new business models in the past 30 years, with very small loans to creating borrowers with arrears to use, with little or no warranties. These methods include group lending and liability, pre-purchase savings needs, the loan amount will increase gradually, and the implied warranty of easy access to future loans, if any loans be repaid in full and without delay.
Inception, that MFIs

MFI occur if the lack of access to credit for the poor to address practical problems from the difference between how we work, followed by financial institutions and economic characteristics and financial needs of low income families. For example, commercial banks need a stable source of income borrowers, from which principal and interest back to the agreed conditions may have been paid. However, the income from a large number of independent households are not stable, regardless of their size. A large number of small loans are needed to serve the poor, but the lenders prefer large loans in small amounts for administrative costs to a minimum to make. They have also been looking for security with a clear title - have not many of them low-income households. In addition to the bankers tend to view low-income households with a poor risk to extremely high costs of monitoring information from the company to impose.

Microcredit is a part of microfinance is the extension of very small loans (microloans) to people living in poverty has been designed to enhance entrepreneurship. These individuals lack collateral, steady job and a verifiable credit history and can not meet even the minimal qualifications to gain access to traditional credit.
Business model for the acquisition of financially viable

The last ten years show, however, a successful experience in financing small entrepreneurs and producers, the poor people, the response to the access and timely financial services at market rates, to repay their loans and the use of the product to improve their income and assets. This is not surprising, because the record only realistic alternative for them, from informal market at interest rates much higher than the market. Community banks, NGOs and local organizations of the savings and credit groups around the world have shown that it can micro-loans to be beneficial for borrowers and lenders, making it one of the micro-financing, the most effective strategies for reducing poverty .

To the extent that microfinance institutions are financially viable, self-sustaining, and an integral part of the communities in which they operate, they have the potential to win more resources and expand services for customers. Despite the success of microfinance institutions, only about 2% of the world population is estimated around 500 million small business owners have access to financial services.

The Grameen Bank, which is a synonym for microfinance, makes small loans to poor people without collateral. Founded in 1976, the Grameen Bank (GB) over 1,000 branches (a branch is made up of 25 to 30 villages, about 240 groups and 1200 borrowers) in every province with Bangladesh, the loan groups in 28,000 villages, 12 lakh borrowers more than 90% are women. It has an annual growth of 20% with respect to the borrower. The most important feature is the product of borrowing, as high as 98%. An interesting feature is the ingenious way of funding the loan with no "guarantee". The system of Grameen Bank loans is simple, but effective. The system of this bank is based on the idea that skills shortage is based not busy. A group of credit approach is applied to ensure the pressure of peer groups in order to follow through and make borrowers in carrying out financial transactions with strict discipline, and ultimately to develop a remedy to an improvement in borrowers with good credit ratings.

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Muhammad Yunus. CEO and Founder of microcredit Grameen Bank

Muhammad Yunus born June 28, 1940 Is A Bangladeshi economist and founder of the Grameen Bank, an institution that provides microcredit A (small loans to poor people with Do Not Guarantee) pour aider to establish the customers of its self-sufficiency and financial solvency. In 2006, Yunus and Grameen receipt of the Nobel Peace. Yunus himself a receipt illicit drugs other national and international awards.

He is a member of the Advisory Council or the University of Science and Technology Shahjalal. Previously, he a professor of economics at the University of Wete Chittagong e he developed the concept of microcredit and finance. ESC has given loans to entrepreneurs too poor to own adjective to make traditional banking loans. He is the author of Banker to the Poor and books on Two Models of Social Affairs, the UN and a board member and founder of the Grameen Foundation Grameen America. In 1996, Yunus introduced a mobile phones to rural villages. Grameen Intel EST just one of hundreds of public-private partnership and is now rated mediated Youth & Yunus. Or early 2007, a policy towards interest Yunus Shown Launch Party and Bangladesh called Nagorik Shakti (Citizen Power), AIS Abandoned by the regime. He is the founding member of the UN Global Elders.

Muhammad Yunus is a Board of Directors of the Foundation of the United Nations, United Nations Organization Public Charity a Cree 1998 with entrepreneur Ted Turner and historic $ 1 billion in philanthropic support by the United Nations gift Cause. United Nations Foundation met and built a work of public-private partnership or address pressing problems in over the world, and the support of the UN expands.

In March 2011, after months of crisis the Government, the Government of Bangladesh, a tire of his son Post to Grameen Bank Yunus, the violation of the Act and citing an age limit on its position. High Court of Bangladesh, said a kidnapping, March 8. Yunus and the Grameen Bank are Calling the decision, saying the removal was politically motivated Yunus.