Talking about microfinances is talking about Mr. Yunnus, dean of the department of Economics at Bangladesh University, founder of the Grameen Bank and pioneer in offering microloans to the poorest communities in the earth. He was awarded with the Peace Nobel Price in 2006.
Transaction costs and solvency concerns were the greatest obstacles for the development of a fair and sustainable financial ecosystem within the poor communities.
Mr. Yunnus overcame these obstacles through a new approach to lending, incorporating new ideas as social collateral.
Mr. Yunnus success with Microfinances and universal principles from the Gospel have inspired the development of the Microfinance area within Students International.
It follows some basic metrics of the Microfinance portfolio (year-end 2015):
- Number of Associates: 150 (an increase of 18 from Dec 2014)
- Average Loan Amount: $627 US Dollars
- Loan Portfolio Evolution (committed amount): -8.27% when compared to Dec 2014.
- Savings Portfolio Evolution (deposited amount): +22.61% when compared to Dec 2014
Interesting material on Microfinance:
- Interview to Jim Yong kim, President of the World Bank: “women’s economic empowerment is not just smart economics— it’s key to ending extreme poverty”- @JimKim_WBG | #WD2016 – For a complete interview, click the following link: https://amp.twimg.com/v/e9749e8c-3fb2-471b-9171-5e37dac8bd2c
- The Microfinance Handbook, a complete guide to Microfinance from a financial market system perspective: https://openknowledge.worldbank.org/bitstream/handle/10986/12272/9780821389270.pdf
- One of the few focus programs in Microfinance in the world, offered by the prestigious UAM in Madrid: http://www.mastermicrofinance.com/