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Definition
Microcredit programmes extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families.
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What is Microcredit?
The word "microcredit" did not exist before the seventies. Now it has become a buzz-word among the development practitioners. In the process, the word has been imputed to mean everything to everybody. No one now gets shocked if somebody uses the term "microcredit" to mean agricultural credit, or rural credit, or cooperative credit, or consumer credit, credit from the savings and loan associations, or from credit unions, or from money lenders.
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Three C's of Credit
Character: means how a person has handled past debt obligations: From credit history and personal background, honesty and reliability of the borrower to pay credit debts is determined.
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UN-General Assembly Resolution
Taking note of the report of the Secretary-General on the observance of the International Year for the Eradication of Poverty (1996) and recommendations for the rest of the First United Nations Decade for the Eradication of Poverty (1997-2006).
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UN Report: Role of Microcredit
The present report has been prepared in response to a request contained in General Assembly resolution 52/194 of 18 December 1997. This is the first time the Secretary-General has been requested to prepare a report on the question of microcredit and the eradication of poverty. The prominence given to the matter reflects the recent success of small-scale lending programmes such as the Grameen Bank of Bangladesh.
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Credit Lending Models
Microfinance institutions are using various Credit Lending Models throughout the world. Some of the models are listed below.
Associations :
This is where the target community forms an 'association' through which various microfinance (and other) activities are initiated. Such activities may include savings. Associations or groups can be composed of youth, or women; they can form around political/religious/cultural issues; can create support structures for microenterprises and other work-based issues.
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Microcredit Summit
This summit is about setting the stage to unleash human creativity and endeavor of the poor. This summit is to guarantee every poor person the chance to undertake responsibility to establish his and her own human dignity.
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Press Clippings
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