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The domestic Accion programs started in Brooklyn, New York, and grew from there to become the first nationwide network microlender. [30] [circular reference] US microcredit programs have helped many poor but ambitious borrowers to improve their lot. The Aspen Institute's study of 405 microentrepreneurs indicates that more than half of the loan ...
The Microcredit Summit Campaign, an American non-profit organization, started as an effort to bring together microcredit practitioners, advocates, educational institutions, donor agencies, international financial institutions, non-governmental organizations and others involved with microcredit around the goal of alleviating world poverty through microfinance.
Village banking is a microcredit and saving methodology whereby financial services are administered locally in a community bank rather than in a centralized commercial bank. Village banking has its roots in ancient cultures and was most recently adopted for use by micro-finance institutions (MFIs) as a way to control costs.
Some argue that microcredit empowers women. In the US and Canada, it is argued that microcredit helps recipients to graduate from welfare programs. Critics say that microcredit has not increased incomes, but has driven poor households into a debt trap, in some cases even leading to suicide. They add that the money from loans is often used for ...
A study in Bangladesh showed that microcredit increases dowries, with women forced at times to take microcredit loans as the only means to pay these increased dowries for their daughters. [27] The first randomized evaluation of the introduction of microcredit, carried out in Hyderabad in India, found no impact on women's decision-making. [5]
Many microcredit programs are offered to groups of women who share "group liability", meaning that all members of the group are responsible for repaying the loans if one of the members defaults. Group liability has been promoted by Nobel Prize winner Muhammad Yunus as the best way to ensure high repayment rates. [ 23 ]
In 2009 and 2010, Accion helped to start microfinance institutions in underserved areas of Inner Mongolia, Cameroon, and Brazil.. In December 2009, Accion inaugurated Accion Microfinance China (AMC) in Chifeng Prefecture, Inner Mongolia; this microfinance institution represented the first wholly owned foreign microcredit company (MCC) and only the second wholly foreign-owned MCC in the country.
Under the Build, Operate and Transfer (BOT) program, the Trust directly implements the projects to respond to the need for immediate and rapid implementation of poverty focused microfinance programs. Grameen Trust hosts the Grameen Global Network (GGN) and publishes the Grameen Dialogue newsletter to promote the cause of microcredit movement. [5]