Bringng financial peace

Nobel Peace Prize | The first-ever Nobel Peace Prize awarded to an economist recognizes a 30-year success story underwriting small businesses among the poor | Priya Abraham

This year's Nobel Peace Prize went to a rare breed among recipients: an economist. Muhammad Yunus and his Grameen Bank of Bangladesh scooped the award last week with a poverty-easing idea he pioneered 30 years ago. Microcredit spawned a global movement that has reached 92 million, most of them women. Here's a brief look at microcredit and its impact.

What is microcredit?

Microcredit is a system of giving small loans to the very poor who have no collateral, credit history, or other means to qualify for credit from regular banks. The loans, often less than $100, allow borrowers to start businesses and support themselves and their families. The borrowers form a group where each member guarantees the others' loans. Because they are responsible for one another's success, repayment rates are usually high.