Name: ______________________ Date:____________

In my OWN words this means.. TEXT Write or draw what you

visualize while reading the text.
Where and when did micro-credit
begin?
The concept of micro-credit began in
Bangladesh in the
mid-1970s. Muhammad Yunus, a
professor of economics from Bangladesh,
saw firsthand how very small loans could
help poor people and their families
survive.

How did Yunus begin his micro-credit

practice?
His first loan, for $27 and out of his own
pocket, was lent to a woman who used it
for materials to make simple bamboo
furniture. She sold the furniture to support
herself and her family.

What is the Grameen Bank and what

kind of system does it use?
In 1976, Yunus started the Grameen Bank
(Grameen means “rural” or “village” in
the Bangla language) to make loans to
poor people in Bangladesh. To guarantee
that the loans are repaid, the bank uses a
system of “solidarity groups.” These are
small, informal groups that apply together
for loans. The members guarantee to repay
the loans of any member who does not
pay. They also support each other’s efforts
at economic self-advancement.

To what parts of the world has the

Grameen Bank spread and why?
Grameen Bank’s suc- cess has inspired
similar efforts throughout the developing
world and even in industrialized countries.
Many micro- credit projects follow
Grameen’s emphasis on lending
specifically to women, since typically
more women live
in poverty than men. Women are also
more likely than men to devote their
earnings to serving the needs of their
entire family.