Small loans, big dreams

Microfinance, introduced by Nobel Laureate Dr. Muhammad Yunus, offers a groundbreaking solution to combat poverty and empower marginalised communities, particularly women. It provides small, collateral-free loans to individuals who lack access to traditional banking, enabling them to invest in businesses, agriculture, or other income-generating activities. Unlike conventional banking, microfinance relies on trust rather than credit history and employs group lending models to ensure accountability. Borrowers begin with small loans and can access larger amounts with successful repayments, promoting financial discipline while reducing default risks.
This model goes beyond just financial aid, fostering social development by encouraging education, health, and sustainability. For instance, the Grameen Bank has disbursed over $36 billion in loans, with 97 per cent of borrowers being women, underscoring its impact on gender equality. By giving people the tools to achieve financial independence, microfinance creates a ripple effect, lifting families and communities out of poverty. As Dr. Yunus states, "Making money is happiness. Making others happy is super-happiness."

Tanvir Mahmud
North South University
[email protected]