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Ramping Up Micro-finance

The Big Idea for Friday, August 02, 2013

In areas of extreme poverty, it is difficult for people to acquire loans through traditional avenues. The poor simply don’t have the collateral, credit history, or income levels to be eligible for traditional bank loans. Ironic those who need the funds the most are the least eligible. This is where Muhammad Yunus comes in.  By giving people micro-loans, and engaging in micro-finance, he provides incredibly small loans to people who need them.  He turns traditional banking on its head because he gives loans in very small amounts to those with the lowest income and the least amount of collateral. This allows people to get back on their feet, pay the loans off, and to become economically self-sufficient. This is not a business, which produces a good for profit, but a business that produces a social good like “economic self-sufficiency” or “self-esteem” or “empowerment.” 



  1. 1 Taking Loans to the Micro Level: Muhammad Yunus
    Jackson Allison The Big Ideas Of Our Time
  2. 2 Who are you?
    Muhammad Yunus
  3. 3 Should microfinance be commercialized?
    Muhammad Yunus

Ramping Up Micro-finance

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