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What is Microcredit? It is a revolutionary method of alternative banking that gives loans to people (specifically) who are below the poverty line - without collateral. It enables extremely impoverished people to engage in self-employment projects that allow them to generate an income and, in many cases, begin to build wealth and exit poverty . Where is Bangladesh in Microcredit? Bangladesh is a pioneer in the world of Microcredit with one of the largest number of microfinance institutions (MFIs) and highest penetration rates in the world. The top four organizations, by number of borrowers as of 2007, are: These, along with 450 others, cater to a 19 million active borrowers and have $300 million in savings. Grameen and BRAC are two of the oldest microcredit organizations in the world and have proven their models of bringing people out of poverty with their microloan programs. These organizations have picked up where the government has left off and executed at exemplary levels. Grameen alone has lent out over $6 billion in the past thirty years with a 98% recovery rate.
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