Abstract
Micro Finance has emerged as a very effective tool for alleviating poverty in the
recent past. The concept of microfinance is basically lending money to poor or helping them
some other way to help them start or establish a small business or to improve their living
conditions. It includes micro loans, insurance, health cover etc. Micro Credit is the most
common type of microfinance. It is a small loan given to poor to help them increase their
income base. Microfinance is also used by poor people to come out of some other problems
such as illness, expensive loans, unhygienic living conditions etc. There are various
microfinance models2
implemented in the world and day by day it is gaining popularity.
Experts now consider it the most effective tool for poverty reduction or even poverty
alleviation. It really became popular in the world after the success of Grameen Bank of
Bangladesh model got enormous success. Dr. Muhammad Yunus, a noble laureate started it
on a small scale but it developed very fast and thousands and thousands of families and
individuals were benefited. Their lives changed and they became independent. The model
was then highly appreciated and is followed by many others in the world with some
variations. In Pakistan, the government and NGOs are using this tool quite effectively.
International donors and local philanthropists are contributing towards the funds created for
microfinance, although the contribution of international donors is very large but as this
concept is becoming popular more philanthropists are also donating money to microfinance
institutions.
PROF. ATHER AZIM KHAN. (2006) ROLE OF CAPACITY BUILDING IN MICRO FINANCE – “A MODEL OF EFFECTIVE CAPACITY BUILDING”, Paradigms , Vol 1-2, Issue 1.
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