Development
Microfinance
Definition
Financial services (small loans, savings, insurance) provided to low-income individuals who lack access to traditional banking — pioneered by Grameen Bank in Bangladesh.
Explanation
Muhammad Yunus won the Nobel Peace Prize in 2006 for demonstrating that the poor are creditworthy. Microfinance has reached hundreds of millions worldwide, particularly women. M-Pesa in Kenya expanded the concept to mobile platforms. Critics note high interest rates and mixed evidence on poverty reduction. Bangladesh, India, and Kenya are microfinance leaders.