'Yearning for a new way of lifting people out of poverty, he revolutionised banking to allow low-income borrowers access to credit. In the process, he has enabled citizens of the world's poorest countries to create profitable businesses, support their families and help build sustainable communities.

'In so doing, Muhammad Yunus has unleashed new avenues of creativity and inspired millions worldwide to imagine their own potential,' it said.

Retired Anglican Archbishop Desmond Tutu of South Africa, well known champion of human rights, world renowned physicist and author Stephen Hawking and Mary Robinson, Ireland's first female president and a former UN high commissioner for human rights were also honoured.

The Medal of Freedom was established in 1945 to recognise civilians for their efforts during World War II. It was revived in 1963 as a way to honour individuals for distinguished service from all walks of life.