Microcredit provides small loans to low-income individuals to help them become self-employed entrepreneurs. The concept originated in the 18th century and was pioneered by organizations like the Grameen Bank founded by Muhammad Yunus in 1983. Yunus was awarded the Nobel Peace Prize for establishing microcredit as an effective anti-poverty strategy. In Pakistan, microcredit is offered through various microfinance institutions including NGOs, rural support programs, and commercial banks to support entrepreneurship among the 24% of Pakistanis living below the poverty line, which is double the urban rate.

2. Micro Credit

3. NAME: ADNAN KHALIL
ROLL NO.BAGF13E263

4. Microcredit is the small loan facility provided to
the people with less earning, to motivate them to
become self employed

5.  The word "microcredit" did not exist before the
seventies.
 Now it has become a buzz-word among the
development practitioners.
 The term "microcredit" to mean agricultural
credit, or rural credit, or cooperative credit, or
consumer credit.

6. Microcredit can be found at various times in modern
history such as
 The Starr-Bowkett Society ( Jonathan Swift) inspired
the “Irish Loan Fund” of the 18th and 19th centuries.
 In the mid-19th century , Individualist anarchist
“Lysander Spooner” wrote about the benefits of
numerous small loans for entrepreneurial activities to
the poor as a way to alleviate poverty.

7.  In the 1950s, “Akhtar Hameed Khan” began
distributing group-oriented credit in East Pakistan.
In which credit is distributed through community-
based initiatives.
 Nobel laureate “Muhammad Yunus”, the founder
of “Grameen Bank”, which is generally considered
the first modern microcredit institution.

8.  The Grameen Bank, which is generally considered
the first modern microcredit institution, was
founded in 1983 by “Muhammad Yunus” in
Bangladesh.
 Though the Grameen Bank was formed initially as
a non-profit organization dependent upon
government subsidies, it later became a corporate
entity and was renamed “Grameen”.

9.  Muhammad Yunus was awarded the “Nobel
Peace Prize” in 2006 for his work providing
microcredit services to the poor.
 His objective was to help poor people escape from
poverty by providing loans.

10. Microcredit Microfinance
 Microcredit is the small
loan facility provided to
the people with less
earning, to motivate them
to become self employed.
 Subset
 Credit Activities
 Microfinance refers to the
number of financial services
provided to the small
entrepreneurs and enterprises
who cannot take shelter of banks
for banking and other services.
 Superset
 Credit and non-credit activities

11. Currently there are four types of microfinance
institutions working in Pakistan and these are as
follows.
 Microfinance Institutions (MFI or Specialized
NGO)
 Rural Support Programs (RSP)

12.  Non Government Organizations (NGOs)
 Commercial Financial Institution (CFI)

13. Logo Name Active Since Work
Kashf Foundation
Small Loans and
financial
education for
poor.
ORANGI PILOT
PROJECT
1980
Asasah 2003
An MFI-
Microfinance
Institution
Micro Finance / Micro credit NGOs in
Pakistan

14. Logo Name Active Since Work
Akhuwat 2001
Community
Support
Concern
1989
Loans for uplift
of rural
communities
Rural
Community
Development
Society
1998
Community
Training,
Microfinance

15.  Low income and lack of basic needs
 24% people live blow poverty
 Poverty ratio is double in rural areas compared to
urban.
 In urban 14.96% poverty and rural areas 28%
poverty.

16. Poor /non poor
categories
2000-01 2004-05
Extremely poor 1.1 1.0
Ultra poor 10.8 6.5
Poor 22.5 16.4