The Role of Microfinance on Poverty Alleviation and Its Impacts on People and Society: Evidence From the Grameen Bank

Abstract

The Origin of Microfinance has started in 1976 by Muhammad Yunus in Bangladesh it has positive impacts on poor people and societies. Grameen Bank (GB) provides microfinance services for people in rural regions so they can use the capital for productive work and become financially stable and independent. According to the (Report of the Post Enumeration Check of the Population and Housing Census: 2011: 23) 78.3% of the population still lives in rural areas, the development of rural Bangladesh depends to a large extent the development of poor people. In this article, we have described the role of microfinance in poverty alleviation and its impacts on people and society. Here we have Grameen Bank's model explained, the main purpose of this article is to present Microfinance and how it can be useful for the well-being of society and the reduction of poverty. The first section we described the history of Microfinance Grameen Bank, and then we explained the consequences Microfinance, and in the last section, we discussed the conclusions and the recommendations.
Keywords: Financing, Microfinance, Grameen Bank, Poverty Alleviation, rural poor, women empowerment, Group lending, economic growth, credit