Taking a Look at Microlending

Micro-finance is a very convenient tool for individuals who are hard to get a burden from banks. It is designed for unemployed people, entrepreneurs or those living in poverty. Normally, if you are not doing a high salary job, or if you do not have anything named after you, the bank will not pay you. Our idea is not to provide large amounts of money to people, but to provide a small amount of funds. Most of these people do not have much way to repay their loans because their financial history is not so good.

Internationally, the idea of ​​using microfinance as a means to get people out of poverty is not new. Grameen Bank, thought to be the grandfather of microfinance, began in Bangladesh nearly half a century ago. We have been fans for a long time. They were very successful in destroying the cycle of poverty and their founder Mohamed Yunus received the Nobel Prize in his work in 2006. Grameen Bank offers microfinance (often called microfinance), which often can not be borrowed without collateral. Bank launched a research project to study how to design a credit delivery system to provide banking services to the rural poor - an organization known as non-banking

Although this concept has been used throughout the world for centuries, Muhammad Yunus in Bangladesh is the pioneer of the latest version of Microfinance, a microfinance organization of Cloud Funding, inspired by Yunus' work . While doing his work at the Chittagong University in the 1970s, Yunus began offering a small loan to poor basket weavers. Yunus continued this work for about 10 years before Grameen Bank was founded in 1983. Joseph Brattford, former chairman of the Peace Corps and a student at the University of California at Berkeley, was also admired by establishing the work of modern microfinance. Blatchford founded a non-profit Accion as a volunteer project in 1961 and provided microfinance loans to Brazilian entrepreneurs in 1973 to judge whether a one-time capital inflow will help withdraw from poverty I began to do. The action succeeded: 885 loan helped to create or stabilize 1,386 new jobs

The microfinance industry is working on eradicating poverty and providing low barriers to people who have suffered historically disadvantaged. Critics assert that the only individuals and organizations derived from this practice are lenders with high interest rates and unpaid micro loans in their pockets. Either way, microfinance has made great progress in the economic aspect we know today. However, in the decade that microfinance gained fame, the so-called "bottom of the pyramid" solution leads to a strategy that thinks simply will not work out, in fact it is exacerbating poverty. At our R & D stage, Everex learned about the problems MFI faces and studied possible solutions for specific block chains.