Monday, February 08, 2010

Microfinance Success

Here is a featured piece on microfinance enthusiast Muhammad Yunus. Yunus has done a great deal to help eradicate poverty in Bangladesh. He started a small business loan organization for people too poor to borrow from traditional banking systems.

Yunus went beyond the normal scope of lending money and began uniting the people needing loans into groups. The idea behind these groups was to motivate one another toward success in their enterprises and encourage speedy repayment of loans. The loan groups have proven more than successful with a 98% loan repayment rate in Yunus' bank. The burden of debt weighs heavy on all of us and Yunus makes the load a lot lighter with his unique support groups.

Additionally, micro-lending is becoming easier than ever with sites like Kiva in which you can lend money online and even track the recipient's progress as well as your own repayment schedule. Pretty neat.

-Nick Mohazzabfar