Muhammad Yunus is a prominent Bangladeshi social entrepreneur and economist known for founding the Grameen Bank in 1983. He earned the title "Banker to the Poor" due to his innovative approach to providing microcredit to those living in poverty.
The Grameen Bank is a pioneering microfinance organization that was established in 1983 in Dhaka, Bangladesh. It specializes in offering small loans to impoverished individuals without requiring collateral, thereby fostering self-sufficiency.
Yunus founded the bank with the conviction that access to credit is a fundamental human right. His goal was to assist the poorest individuals in escaping poverty by providing loans with manageable terms, along with essential financial education.
The model developed by Grameen Bank has inspired the establishment of similar microcredit institutions in over 100 countries. It plays a vital role in global efforts to alleviate poverty through microlending practices.
Microcredit refers to the provision of small, long-term loans under favorable conditions to individuals who typically lack access to standard banking services. This financial tool is crucial as it empowers the underprivileged to take charge of their finances and enhance their economic circumstances.
In recognition of their contributions, Muhammad Yunus and Grameen Bank were awarded the Nobel Peace Prize in 2006 for their efforts in promoting economic and social development from the grassroots level.
Unlike traditional banks that necessitate collateral, Grameen Bank operates under the belief that even those in poverty can effectively manage financial responsibilities given the right conditions. This model has resulted in a remarkable repayment rate, with over 95% of loans typically granted to women or groups of women.
Grameen Bank primarily targets women for lending, as experience shows that loans to women yield the best security for the bank and create the most significant positive impacts on borrower families.
In mid-2024, Muhammad Yunus took on a significant political role as he was appointed head of the interim government in Bangladesh following the resignation of Sheikh Hasina.
Q1. Who founded Grameen Bank?
Answer: Grameen Bank was founded by Muhammad Yunus in 1983 as a microfinance institution aimed at helping the poor.
Q2. What is the main objective of microcredit?
Answer: The primary objective of microcredit is to provide small loans to individuals lacking traditional banking access, thereby empowering them to improve their economic situation.
Q3. Why is Grameen Bank's model significant?
Answer: The bank's model has inspired similar institutions globally and has greatly contributed to poverty alleviation through effective microlending practices.
Q4. What award did Muhammad Yunus receive for his work?
Answer: Muhammad Yunus, along with Grameen Bank, was awarded the Nobel Peace Prize in 2006 for their impactful contributions to economic and social development.
Q5. Why does Grameen Bank primarily lend to women?
Answer: Lending to women has proven to provide better security for loans and has a more substantial positive effect on families, making it a strategic choice for the bank.
Question 1: Who is known as the "Banker to the Poor"?
A) Muhammad Yunus
B) Bill Gates
C) Amartya Sen
D) Ratan Tata
Correct Answer: A
Question 2: In which year was Grameen Bank established?
A) 1980
B) 1985
C) 1983
D) 1990
Correct Answer: C
Question 3: What is the primary focus of microcredit?
A) Large business loans
B) Loans for infrastructure
C) Small loans for the poor
D) Student loans
Correct Answer: C
Question 4: What percentage of Grameen Bank's loans are granted to women?
A) 50%
B) 70%
C) 95%
D) 100%
Correct Answer: C
Question 5: Which prestigious award did Muhammad Yunus receive?
A) Booker Prize
B) Nobel Peace Prize
C) Pulitzer Prize
D) Grammy Award
Correct Answer: B
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