Want to play your part in poverty reduction in India?-Part 2/4

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As we all know that two Biggest tools to fight against poverty is 1) Education and 2) Entrepreneurship.

Here Education is the preventive tool i.e. helps a person not to fall in poverty. So, only solution (remedial tool) to eliminate existing poverty (of uneducated poors) is Entrepreneurship which helps person to rise from poverty.

Various economic research studies done in a number of developing countries over past few decades confirm that poverty can be eliminated through fostering entrepreneurship.

But, low cost funding is the biggest problem for poor who want to start their small/micro enterprises as Banks hesitate to lend to the poor fearing default and lack of verifiable credit history and moneylenders charge extortionate interest rates.

The solution is Micro Credit. Mr. Muhammad Yunus who was rated as No.2 in the 'Top 100 Global Thinkers' list and Nobel Peace Awardee pioneered the concept of microcredit. He and his 'Grameen Bank' have shown that even the poorest of the poor can work to bring about their own development.

This solution Micro Credit becomes more effective when channeled through Peer-to- Peer (P2P) lending mechanism as cost of micro loans gets cheaper and more affordable by poor and low income households.

Fortunately, there is an organization in India whose idea was sown in the same year 2006 when Professor Muhammad Yunus and the Grameen Bank were jointly awarded the Nobel Peace Prize "for their efforts to create economic and social development from below".

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