Microfinance: Banking for the poor - Essay Example

This happened in the village of Jobra in Bangladesh. With the passage of time, the concept grew and became prominent when Dr. Yunus founded Grameen Bank in 1983. Before describing how microfinance can be applied in charity and humanitarian project in order to eliminate poverty, it would be helpful to first measure its impact so far in the process of elimination of poverty. There has been a controversy over the assumption that microfinance can eliminate poverty. It is true that microfinance can provide political appeal towards its improvement.

At the same time, it can also influence entrepreneurship within the economy. Vulnerability can be reduced through microfinance. Microfinance can be effectively used in charity projects in order to help eliminate poverty. There has been evidence in the successful implementation of microfinance in charity projects. This particular section of the research part will handle examples of those charity projects where microfinance has done well over a number of years. The following ways can be recommended in an attempt to improve the application of microfinance in charity and humanitarian projects: The microfinance institutions should try to capture the areas where private sector has not yet covered up.

It should create linkage between clients and services and try to develop natives in those areas. Simultaneously, a responsible outlook on the part of the initiators is very essential to promote the concept. This is because those areas will be such where the concept of it will be totally new. It is very essential for the MFI (Micro Finance Institutions) to become flexible enough to address a number of issues for designing programmes. There should be complete tailored schemes by considering the client’s needs.

The design should be prepared accordingly whether to provide individual or integrated projects. There should be complete clarity in the provision of information to those poor societies