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Due to this fact, the operating price of every transaction becomes fairly high for them regardless of of getting high volume of transactions each day. Small Mortgage Quantity- Microfinance corporations present a small loan amount to borrowers not like the mainstream financial banks providing huge loans. The disbursement of giant mortgage amount is unattainable of their case as they don’t ask for collateral security towards the credit. Microfinance was created simultaneously by Bangladeshi social entrepreneur Mohammad Yunus, upon the creation of microcredit in 1983. Yunus established Grameen bank in Bangladesh in year 1983, whose major objective was to offer small loans to entrepreneurs initially. Imaginative and prescient of Yusuf for microcredit was impressed when he saw girls making bamboo stools in Bangladesh and earning two cents a day.

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