Editing Muhammad Yunus (section)

=== The Birth of Grameen Bank ===
In the 1970s, Yunus began researching how traditional banking systems often excluded the poor from access to financial services. He realized that the impoverished, particularly women, lacked the collateral required for loans and were trapped in cycles of poverty. This inspired him to develop a new approach to finance—microcredit.

In 1976, Yunus began lending small amounts of money (often just a few dollars) to rural women in the village of Jobra, without requiring collateral. This experiment proved successful, and in 1983, he formalized his concept by founding Grameen Bank. The bank was designed to offer small loans, or microloans, to the poor, enabling them to start small businesses and improve their livelihoods.

Grameen Bank’s model focused on empowering women, with nearly 97% of its borrowers being women. This approach not only helped lift families out of poverty but also gave women a greater voice and role in their communities. Grameen Bank's success spread globally, and the model was replicated in many countries.