Microfinance

Microfinance has done to the third world countries what the industrial revolution did to the western countries. Microfinance is all about reaching out to the poorest of the poor and providing them with capital so that they become self sufficient in generation income. The pioneer of microfinance is Nobel laureate Mr. Mohammad Yunus from Bangladesh. He started Grameen Bank which was an instant hit. Money was provided at the doorstep of poor households and the meager interest was collected from the door itself. The process sounds cumbrous but is very profitable and now more and more banking institutions are heading to the microfinance market and reaping huge profits. Investments are long term in nature but are certain to give a very good margin to the investors.