Microfinancing
• Micro financing means lending small sums of money to the poor in developing countries so that they can invest their small business and come out of the poverty.
• Borrowers use the money to buy tools, equipment,etc. (Bamboo to make stools, yarn to weave into cloth, or cows to produce milk.)
• The recipients are poor people who ordinarily are notable to qualify for banking services.
• Typically, the loans are less than $100, often as little as $12.
• Micro financing was started by the Grameen (means village) Bank founded by economist Muhammad Yanus in Bangladesh.
• In the midst of famine in 1976, he lent$27 to a group of villagers asked him for help. It was a starting point.