Question : The Grameen Bank, founded by Muhammad Yunus, is associated with which concept of rural development?
Option 1: Microfinance
Option 2: Rural electrification
Option 3: Sustainable agriculture
Option 4: Skill development
Correct Answer:
Microfinance
Solution : The correct answer is (a) Microfinance
The Grameen Bank is a renowned institution that pioneered the concept of microfinance. It was established in Bangladesh in 1983 with the goal of providing financial services to the poor, particularly women, who were previously excluded from accessing traditional banking services.
The Grameen Bank's microfinance model involves providing small loans, also known as microloans or microcredit, to individuals who lack collateral or a credit history. These loans are typically used to support income-generating activities or small businesses, allowing borrowers to lift themselves out of poverty and improve their livelihoods.
Muhammad Yunus, the founder of the Grameen Bank, was awarded the Nobel Peace Prize in 2006 for his efforts in developing and promoting microfinance as a tool for poverty alleviation and rural development. The Grameen Bank's success and its microfinance model have inspired similar initiatives and institutions worldwide, contributing to the expansion of financial inclusion and empowerment of marginalized communities.
