Muhammad Yunus, the father of the microloan, is a Bangladeshi banker and economist. He was born on June 28, 1940 to a Muslim family in the village of Bathua, Chittagong (formerly known as British India). The business gene must have been in his blood as his father was Hazi Dula Mia Shoudagar, a well known jeweler.

In 1944, his family moved to the city of Chittagong. He was transferred from his village school to the Lamabazar Primary School. Later, he passed the matriculation examination from Chittagong Collegiate School. Yunus secured the 16th position among 39,000 students in East Pakistan. During his youth, Yunus was a Boy Scout and traveled to West Pakistan and India in 1952.

In 1957, he enrolled in the Department of Economic at Dhaka where he completed his BA in 1960 and MA in 1961.

His Accomplishments

Previously a professor of economics, he discovered the concept of microcredit; the loans given through this system are given to entrepreneurs too poor to qualify for traditional bank loans.

Yunus went on to found Grameen Bank in 1987 when it was transformed into a formal bank and in 2006, Yunus and the bank were jointly awarded the Nobel Peace Prize Award for "their efforts to create economic and social development from below."

The Microloan Concept

In 1976, Yunus made visits to poor households in the village of Jobra near Chittagong University. He discovered that very small loans could make a huge difference to a poor person. 42 Women from this village secured a very small loan to help them make bamboo furniture. The women went on to make a profit. These loans have enabled Bangladesh's ability to export and import easier, resulting in a more evolved form of globalization and economic status.

The former President of the United States, Bill Clinton, championed for Mohammad Yunus and his works, though others, like The Economist, believed his deeds to be empty and of no possible use.

Too many people have gained from the efforts of Mohammad Yunus in a meaningful way to call his deeds empty, and his banking still works to provide those typically unable to get credit a way forward and a step towards a better life.

Written by Sandra Pianin