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05.07.2013

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Microcredit : Towards women's emancipation ?

In an interview given to My Science Work website, Arnaud Ventura, cofounder of Planet Finance gives us more information about how microcredit help women's empowerment.

Throughout the world 190 million people hold a microloan. More important,80% of them are women.

To explain this phenomenon Arnaud Ventura, cofounder of PlaNet Finance bring us more information.

In fact, even "if numerous studies have shown that microcredit constitues an effective innovation to reduce poverty, we must remain vigilant on the conditions of its use by respecting ethical principles" said Arnaud Ventura.

By looking at the flaws in the traditional banking system in Bangladesh, Muhammed Yunus,2006 Nobel Peace Price, decided to change the whole financial system of the country.
In 1976, he created the first Microcredit Institution : The Grameen Bank, the purpose of it was to help poorest population from exclusion thanks to microloans.

"Yunus wanted to restore dignity and trust of these entrepreneurs " underlined Arnaud Ventura. So microfinance was not mean to be limited solely to the economic level. Muhammed Yunus went far from it by changing mentalities and redefining the role of women in the conservative society of Bengladesh.

The overwhelming poverty throughout the world is what makes small loans interesting. Thanks to the principles of microfinance based on trust, proximity with the microborrower and an excellent understanding of his/her needs it was possible to achieve very high rates of repayment.

Microfinance targets those in the most need, and generally those who do not have access to financial services. In many cases, Microfinance Instituions focus on women. For women, microfinance helped them tremendously to their empowerment. In developing countries, women are frequently confronted with a feeling of insecurity and a lack of autonomy. Financial responsibilities help them regain their self-confidence, and building a better future for their family.

Furthermore women’s repayment rates are generally higher than men’s. Women are more attentive to managing the household budget. Besides some men like husbands, cousins etc... have managed to use women to get loans that they could not have obtained themselves.

Microfinance helps women to achieve financial independence and greater control of their lives.

Source : My Science Work

This article is part of the special report: