History of Microfinance
Microfinance: provision of small-scale loans, savings and
other financial
services to the poor
1950s
60s: Microfinance begins as
highly subsidized rural credit programs in rural areas, part of larger development
projects
1970s
1980s: Spurred by the idea
of solidarity group
lending, and two notable success
stories (Bangladesh and Bolivia), microfinance repayment performance improves
globally
1990s
present: As estimates of
global repayment rates hover around 95%, many microfinance institutions (MFIs)
commercialize into
for-profit companies or become real banks
2003: Microcredit Summit campaign reports
microfinancial services
reach 41 million poor people worldwide (> 9 million in India)
