Introduction : Money begets money. Adam Smith in his famous book Wealth of Nations said, 'When you have got a little, it is often easy to get more. The great difficult thing is to get that little.1 Microcredit is a small size of loan that is given to the poor for self employment. Microcredit through institutional arrangement is a recent innovation for poverty reduction among the poor. Today, Bangladesh is called the Sand of Microcredit revolution. The Microcredit revolution started among rural women in 1970s. The revolution had its root in the recognition that poor people needed credit and more importantly they could use credit more efficiently and responsibly.
Definition of Microcredit : Conceptually, microcredit can be described as collateral free small loan offered to the poor to create small employment in income generating activities based on group Sending methodology.
Microcredit can broadly be defined as a programme that provide credit for
self-employment and other financial and business services including savings and technical assistance to the poor people.
Definition of Microfinance : Microfinance is a combination of savings, loans, investment opportunities, insurance options and other financial services. Poverty, women's empowerment, nutrition, health, family planning, education, reusing, self-reliance, susiainability all are addressed by microfinance.