Financial Exclusion and Microcredit

This research aimed to extract a clear definition of financial exclusion and the importance of microcredit or informal finance (a soft loan or liberalised or collateral free loans) as a tool to combat financial exclusion for financially excluded people or for small businesses credit market and its importance, which foster income generation and poverty elevation through enhancing self-employment in deprived area or people who else otherwise excluded from access to any formal financing system in the UK. A systemetic approach is adopted to analyse the operation mechanism of a successful microfinance institution model from an international perspective like Bangladesh (Grameen Bank) and analyse similar ‘peer lending' model and its viability in the UK.