How does the capability deprivation approach differ from the microcredit approach
Capability Deprivation:-
Capability in the inner strength of an individual that enables converting commodities or characteristics into resources which are useful to maintain some form of living standard or quality of life. The idea is highly subjective with the relative importance of different aspects of inner strength depending on different context.
Capability Deprivation indicates a weak state of capability or some sort of capability suffering. Those without adequate capability cannot function as healthy and creative human beings and thus are considered to be capability deprived. Poverty should be seen as deprivation of capabilities, which then limits the freedom to achieve something, rather than lowness of income.
Microcredit:-
Microcredit is the provisions of financial services to poor people who have been excluded from the Formal banking sector. Microcredit is the extensions of very small loans, to improvised borrowers who typically lack collateral, steady employment, or a verifiable credit history. It is designed to support entrepreneurship, and alleviate poverty.
- It's mission to help poor families to help themselves to overcome poverty.
- It promote credit as human rights.+
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