Few innovations have changed the world as much as microloans in alleviating poverty and providing economic opportunities. This innovative form of credit extension originated from grassroots movements in Bangladesh and has become a powerful instrument for fostering self-employment among the world’s poorest populations, especially women. An economist, Muhammad Yunus, is the pioneer of microfinance, as he single-handedly popularized this concept and further developed its foundations.

Microloans are small-scale loans offered to individuals without access to traditional banking services. These loans are designed to support borrowers in starting a small business, generating income, and improving their living standards. Microloans generally do not require collateral. 

Key features include:                  

 Low loan amount·    

 No requirement for traditional collateral             

 High repayment rates·

 Focus on women and underserved communities