Five Cents a Day: Innovative Programs for Reaching the Destitute with Microcredit, No-interest Loans, and other Instruments: The Experience of Grameen Bank

The rural landless people who are desperately in need of credit generally remain outside the orbit of the banking system. Dr. Muhammad Yunus, Professor of Economics, Chittagong University, launched an action-research program in 1976 with the following objectives: i) to extend the banking facilities to the poor men and women. ii) to eliminate the exploitation of the moneylenders. iii) to create opportunities for self-employment for the vast unutilized and underutilized manpower resource. iv) to bring the disadvantaged people within the folds of some organizational format which they can understand and operate, and can find socio-political and economic strength in it through mutual support. v) to reverse the age-old vicious circle of “low income, low savings, low investment, low income” into an expanding system of “low income, credit, investment, more income, more credit, more investment, more income”.

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