Select the correct match in the context of microfinance.

Correct option is B

The correct answer is (b) Muhammad Yunus - Grameen Bank

Explanation:

• ​Muhammad Yunus is a Bangladeshi social entrepreneur, economist, and the founder of the Grameen Bank, an institution that revolutionized microfinance and poverty alleviation.
• His work has made a significant global impact by enabling impoverished people, especially women, to access small loans and improve their economic condition.
• Yunus is often credited with creating the model of microcredit—small loans given to people who do not have access to traditional banking services.

Information Booster:

The Creation of Grameen Bank:

• Origin of Idea: In 1976, while teaching economics at Chittagong University, Yunus became concerned about the poverty in the rural areas of Bangladesh. He realized that traditional banking systems were not designed to serve the poor, particularly those who had no collateral or credit history. This led him to experiment with lending small amounts of money to impoverished people, particularly women, to help them set up small businesses.
• The First Loan: Yunus started by giving a small loan of just $27 (Bangladeshi taka) to a group of 42 women in the village of Jobra, near his university, to help them make and sell bamboo stools. The loans were provided without collateral, and Yunus personally trusted the borrowers, focusing on their ability to repay rather than their wealth.
• Success of the Pilot: The loan was repaid successfully, demonstrating that the poor could indeed be trusted with small loans. Encouraged by this success, Yunus expanded his efforts, and in 1983, the Grameen Bank was established as a formal institution to provide microcredit to the poor.​