Quote 187: Professor Muhammad Yunus, Credit, Quotes
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 loan grow bigger and bigger. In the end, they decide not to pay back the loan at all. Such long-term lump sum payments also prompt both borrowers and lenders to ignore difficulties that come up early on; rather than tackle problems as they appear, they hope that the problems will go away by the time the loan is due.
