Abstract
The paper examines the role of microfinance in poverty alleviation by focusing on various microfinance programmes in several countries in Asia, Africa, Latin America and Europe. In doing so, it also explores the constraints faced by poor people who want to avail the scheme. Various constraints faced by both the lender (financial institutions) and the borrower (rural people) have been appraised including transaction costs, time, collateral, insufficient or fewer programs, government intervention or political patronage and social, political and occupational segmentation of society. Specifically, the study focuses on the Grameen Bank and Bangladesh Rural Advancement Committee (BRAC) and how these contribute in reducing the incidence of poverty in Bangladesh. Innovations like collateral-free group-based lending of the Grameen Bank have been widely replicated in other countries. These initiatives have not only reduced poverty but have also contributed in improvement in nutrition, better health, and education and employment opportunities.
Dr. Murad Ali,, Gohar Saeed, Alam Zeb, Farzand Ali Jan. (2016) Microcredit & its Significance in Sustainable Development and Poverty Alleviation: Evidence from Asia, Africa, Latin America and Europe , The Dialogue, Volume 11, Issue 3.
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