New small loan scheme poineered in Bangladesh could help women in UK

It is thought that a new small loan scheme which was pioneered within Bangladesh could help to get women out of poverty in Scotland. The Liberal Democrat MSP hopes that the new system of micro credit will help thousands of women to get themselves out of debt and in turn boost the countries economy.

Mohammed Yunus, the Nobel prize-winner who invented the scheme, has been contacted by the Scottish Liberal Democrat leader, Nicol Stephen. Together they are trying to see how the scheme could help the women in Scotland and help them to escape from their poverty.

The reason they think the scheme could work is because many women are currently not allowed to partake in current bank credit schemes. This means that there is literally no help for them within the UK and a new scheme is definitely what is needed.

Mohammed Yunus created the scheme along with Grameen Bank which now operates in various countries around the world both in developed and undeveloped countries. They won the Nobel Prize in 2006 and that is what has inspired the Liberal Democrats in Scotland.

The loan amounts that these women need are often not very big but they would help them out considerably. Women tend to be in a bad position when it comes to borrowing from the bank as many were previous stay at home mums or housewives who do not have an employment history or proof of income at all.

The new scheme has not yet been used in Europe and the Liberal Democrats are hoping that Scotland will be the first place in Europe to benefit. Obviously the levels of poverty in Scotland are not as severe as the ones in Bangladesh but for Europe they are quite bad and that is why something needs to be done now.

If all goes well the new scheme will no doubt be up and running by the end of 2007 perhaps early 2008.