Microcredit
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Pronunciation: \mī-()krō-kre-ditEtymology: Micro+Credit
Function: noun

1: Microcredit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others living in poverty that is not considered bankable. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit. Microcredit is a part of microfinance, which is the provision of a wider range of financial services to the very poor.
2: Muhammad Yunus, a professor of economics at Chitagong University started a similar experiment. Around 1974, during a famine in his native Bangladesh, Yunus discovered that very small loans could make a difference in a poor person's ability to survive, but that traditional banks were not interested in making tiny loans to poor people, who were considered repayment risks. His ways of working for the poor in this sector and grameen bank bring him a Nobel prize in last year.
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(asaduzzaman rassel, 09/12/07)
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