What do poor people do when they need access to credit? Today's answer to this dilemma is one word - Microfinance.

A powerful tool that enables the poor to pull themselves out of poverty Microfinance typically covers microcredit, savings, insurance, money transfers and other financial services targeted at poor and low-income clients. Most commonly, it involves making small loans to working poor who do not have access to other formal financial institutions. These usually micro entrepreneurs use the loans to establish or expand small businesses to generate income for the family. They could be street vendors, artisans, seamstresses, small shop  or cottage industry owners.

This extra income gives poor the purchasing power to buy food, access healthcare, education and put aside savings for the future and enjoy a better standard of living. Microfinance in its modern sustainable avatar is a source of hope to underprivileged families across the country.

The success of the microfinance system in improving the lives of the poor, has been acknowledged around the world. In 2007, Muhammed Yunus, the founder of Bangladesh’s Grameen Bank, was awarded the Nobel Peace Prize for his pioneering work in the sector.