Muhammad Yunus created the Grameen Bank in 1983 and to this day the organization continues to be profitable, but not only that, it helps countless numbers of impoverished individuals, mainly women, in third world countries. Yunus realized that most of these poor individuals would continue to be poor if they did not receive any help, and the only way to do that was to take out loans with extremely high interest rates which they would be unable to repay. He came up with the idea of microcredit which is giving these poor individuals loans without collateral required. From these loans these individuals create what is referred to as a Microenterprises which are businesses with few employees and a small amount of starting capital. Typically these loans are given to a group of people that must support one another in repaying the loans. This helps that if one individual is struggling all of the others are to help support that person. Individuals that take out these loans must
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Muhammad Yunus, Grameen Bank, Microcredit, world count ries