History Of Microfinance

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A Brief History of Microfinance The concept of micro finance is not new. The history of micro finance dates back to early 1700’s. In the early 1700’s there were a number of savings and credit groups were operating all over the world. A few of them are “Susus of Ghana, “ Chit funds” in India, “Tandas” in Mexico, “Arisan” in Indonesia, “Cheetu” in Sri Lanka etc. There were also other formal institutions that were operating to lend to those who were not given credit by the commercial banks. In early 1700’s, author and nationalist Jonathan swift initiated Micro-credit organization in Ireland. Then by 1840’s about 300 funds were spread all over Ireland. In the 1800’s, a number of institutions and agencies named as Peoples bank, credit Union, savings and credit cooperation, emerged in Europe. Fredrich Wilhelm Raiffeisen and his supporters came up with the concept of credit union to provide credit to the poor and the needy. This helped the poor as they did not have to depend on money lenders.In 1870, a number of formal saving and credit institutions expanded over the regions of Germany,...

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