Yunus
Micro Finance
Essay based on a book: Banker to the poor: Micro-lending and the battle against world poverty, by Yunus Muhammad.
"What challenges did Yunus overcome to develop microfinance?"
The data on the starvation and poverty issues pushed the economist Muhammad Yunus to invent another type of finance, called microfinance (micro credit) based on the experiments, studies and reports of the farmers, he went to local villages to "learn from the poor" and find out what they actually needed to develop. Then Yunnus decided to create a specific bank whose goal was to provide the poorest of Bangladesh with minuscule loans.
In Jobra’s village, he began seeking money for the stool makers. He asked a bank to lend some money to the stool makers but it refused, arguing that the amount was too small and that collateral was needed.
So Yunus guaranteed for the stool makers and borrowed money for the poor in bangladesh. Yunus says that the bank system was not very efficient. And this is where it all began.
The basic idea of this project consisted on doing the opposite of traditional banks, ie borrowing little sums of money and a daily payment of the loan. This was the first challenge: designed an alternative to classic banks, then he found a solution by launching the a bank : the Grameen Bank.
The second challenge was to extend the Grameen Bank somewhere else than in Jobra. In the chapter six, Yunus tried to arrange the concept in Tangail, but he had to face some difficulties: not only there was a cultural problem but the Central bank also refused to accept the Grameen Bank.
Moreover, another challenge was to talk around people that this project based on microfinance might work. So he reached out to Muhith, the Minister of Finance of Bangladesh, and managed to persuade him: this is how the Grameen Bank was born in Bangladesh.
In other chapter we can see that the Grameen Bank ensures the borrowers that they are more concerned
Essay based on a book: Banker to the poor: Micro-lending and the battle against world poverty, by Yunus Muhammad.
"What challenges did Yunus overcome to develop microfinance?"
The data on the starvation and poverty issues pushed the economist Muhammad Yunus to invent another type of finance, called microfinance (micro credit) based on the experiments, studies and reports of the farmers, he went to local villages to "learn from the poor" and find out what they actually needed to develop. Then Yunnus decided to create a specific bank whose goal was to provide the poorest of Bangladesh with minuscule loans.
In Jobra’s village, he began seeking money for the stool makers. He asked a bank to lend some money to the stool makers but it refused, arguing that the amount was too small and that collateral was needed.
So Yunus guaranteed for the stool makers and borrowed money for the poor in bangladesh. Yunus says that the bank system was not very efficient. And this is where it all began.
The basic idea of this project consisted on doing the opposite of traditional banks, ie borrowing little sums of money and a daily payment of the loan. This was the first challenge: designed an alternative to classic banks, then he found a solution by launching the a bank : the Grameen Bank.
The second challenge was to extend the Grameen Bank somewhere else than in Jobra. In the chapter six, Yunus tried to arrange the concept in Tangail, but he had to face some difficulties: not only there was a cultural problem but the Central bank also refused to accept the Grameen Bank.
Moreover, another challenge was to talk around people that this project based on microfinance might work. So he reached out to Muhith, the Minister of Finance of Bangladesh, and managed to persuade him: this is how the Grameen Bank was born in Bangladesh.
In other chapter we can see that the Grameen Bank ensures the borrowers that they are more concerned