Credit is a human right
But I do say everybody is entitled to financial services hellip; access to credit is a human right. A homeless person should have the same right as a rich person to go to a bank and ask for a loan depending on what case he presents.
Conventional banks and credit cooperatives usually demand lump sum payments. Parting with a large amount of cash at the end of a loan period is often psychologically trying for borrowers. They try to delay the repayment as long as they can and in the process they make the...
In structuring our credit program, I decided to do exactly the opposite of traditional banks. To overcome the psychological barrier of parting with large sums, I decided to institute a daily payment program. I made the loan payments so small that borrowers would barely miss the money. And...
The ultra-left has always hated us hellip;They believe our plan is to spread the seed of capitalism by giving poor people just enough money that they don rsquo;t demand an end to power by the rich. The extreme right is also upset with us because they think that...
There should be pro-poor micro credit and another term for commercialized, profit-driven microcredit. We want microcredit to remain true to its mission. nbsp;
To my great surprise, the repayment of loans by people who borrow without collateral has proven to be much better than those whose borrowings are secured by assets. Indeed, more than 98 percent of our loans are repaid. The poor know that this credit is their only opportunity...
I went to the bank and proposed that they lend money to the poor people. The bankers almost fell over.
The moment you say microfinance everybody wants to help you.
We developed microfinance to fight loan sharks - I was telling people don t go to loan sharks - not trying to take advantage and make money for myself. I would be a junior loan shark if I did... It is not a panacea.
