Wondering where the idea that revolutionized the credit world comes from? You have no idea who is behind the idea of implementing microcredit? If so, you will certainly be interested in the article we have prepared, in which you will find basic information about the origin of microcredit. We hope that the effort put into its personalized editing will bring readers many benefits. In case of any questions or doubts, we offer professional advice and assistance.
In the article you will find:
- Presentation of the originator of microcredit
- Microcredit analysis
- Pros and cons of microcredit
Presentation of the originator of microcredit
There is no doubt that microcredit is a topic that guarantees a lot of emotions and raises controversy among a diverse audience. To dispel any doubts that arise, we decided to correct the information from the very beginning. The originator of microcredit is the founder of Grameen Bank, the Nobel Peace Prize winner . This award was given to him for popularizing microcredit, which significantly facilitates the development of people in less developed countries.
This banking product is nothing but a form of loans for the poor. Gro critics and experts, after many years believes that this award was not sent rightly. The professor himself responds to the accusations and says that one should not analyze progress after such a short time. The idea of microcredit came to meet the needs and requirements of the much poorer. Unfortunately, the majority of people in the world cannot save because of their financial status.
From the very beginning, this solution was dedicated to the citizens of the poorest and least developed countries. Micro-loans can be a way to finance all kinds of outlays that involve starting from scratch new or developing non-agricultural business ventures in rural areas. In terms of microcredit, it should be borne in mind that the maximum loan amount is PLN 20,000. What’s more, this loan is granted by one of the banks that cooperate with the Foundation. The repayment deadline cannot exceed three months, and the loan collateral itself is insured by the bank individually.
To start applying for microcredit, you must submit a written application to one of the banks cooperating with the Foundation. One should not forget about the appropriate documentation and a range of information that will confirm the possibility of repayment of the incurred debt. Then, the bank depends on all the necessary actions that will be associated with making a decision to grant a loan.
Pros and cons of microcredit
Currently, microcredit is an interesting solution for all those who need an extra cash injection. Like any alternative, they bring both disadvantages and advantages. First of all, their availability for even the poorest people is a great facilitation. The originator’s goal was to create a way for the poorer to operate more freely. The disadvantage may be the fact that, so far, the measures taken have not reduced the percentage of the poorer. It is true that change takes time and nothing happens immediately.