Yunus worried at media 'vilification'

[CaPtAiN_pLaNeT]

Zabanya,

Could you explain why people would pay a higher interest to Grameen Bank when commercial banks have lower interests.

I have not understood the logic.

I am quite sure there must be something or else people can't be that stupid!

Because grameen bank is giving money to the poor without any deposit. Normal commercial bank will do a credit check of the individuals before giving any credit and loan. To compensate the risk they charge higher interest. Same case also applied here in Canada. Based on credit score different person has different interest rate for the same amount of loan by same bank.

Grameen Bank tries to say that at least they are giving an opportunity to the poor to earn something using the credit. Yes in many occasion people fails to utilize that but otherwise they would not even get the chance.

 

[Tiki Tam Tam]

That is a good answer.

Thank you.

What are the statistics on the balance sheet of defaulters?

 

[CaPtAiN_pLaNeT]

That is a good answer.

Thank you.

What are the statistics on the balance sheet of defaulters?

I do not know. I will have not looked in to it.

But there are some allegation n that the defaulters are asked to take more loan. Like this way if they fail to pay the money they eventually end up even selling their own house. Personally do not know to what extend it is true or this sort of activity is carried away by some employee only with out administrative order in remote villages.

 

[fallstuff]

People before posting sbould at least know how micro financing loans are originated and Administered. There is always a premium for at risk borrowers.

 

[Tiki Tam Tam]

People before posting sbould at least know how micro financing loans are originated and Administered. There is always a premium for at risk borrowers.

People are well aware.

They just want to know about the reality from Bangladeshis and not from foreign or Indian second hand information.

Got the difference?

If you have nothing constructive to offer, please do not veer of to the ludicrous just to indicate that you are still around these part, breathing and hence, exist!

Be more life Sami who had the good grace to explain and not waste bandwidth as you are doing.'


Thank you, my good man.

 

[fallstuff]

Yunus has a special place among patriotic BD folks. He doesn't have to worry about his image. Thick one has finally shown all the cards, she has no more ace to play.

 

[Tiki Tam Tam]

I do not know. I will have not looked in to it.

But there are some allegation n that the defaulters are asked to take more loan. Like this way if they fail to pay the money they eventually end up even selling their own house. Personally do not know to what extend it is true or this sort of activity is carried away by some employee only with out administrative order in remote villages.

Well, I have heard or should I say, read about it and so I wanted to know exactly as to what is happening.

To a great extent, you have given an insight.

 

[Tiki Tam Tam]

Yunus has a special place among patriotic BD folks. He doesn't have to worry about his image. Thick one has finally shown all the cards, she has no more ace to play.

Of course, he should have.

After all, he is the only Nobel Laureate.

Who is bothered about what your political leaders have to say.

They are, as it is, in a very confused state, if one goes by the thread out here and the Bangladesh media.

My views are based on understanding an issue on its holity and not on mere gut feeling or mushy sentiments.

Amartya Sen is one of the Nobel Laureates of India and I will be damned if I will swoon on hearing his name or his feat.

 

[fallstuff]

The issue is lending to people that no one else does.

What Yunus did is develop a model where lending maybe possible to at risk borrowers.

He started to lend to womem who have no other way to generate fund. A poor women now at least has a chance to take a shot at life.

 

[InFn-0]

@ tiki - Commercial banks wont provide you loan of 2000 taka. Grameen bank will provide you loan of 200 taka also if you ask them, that is why it is "micro" credit. And there is the deposit issue also, you wont need any security to take loans from them. Now when you question why the interest rate is 20%, i ll say it is because risk is higher. And Grameen charges the lowest interest rate among microcredit firms in Bangladesh.

 

[Tiki Tam Tam]

Good explanation.

Making sense to me now!

Doesn't the Grameen check if a person can pay or not?

What if a real poor chap comes and wants a credit of say, Rs 1000 and his pay is only Rs 200 per month and one does not know how much he can spare to pay the loan (the repayment total is rising because of the longer period the man requires to pay)?

 

[Arko]

I am not aware of the entire system. From what I read 2-3 years back, Grameen gives loans to individuals but when it comes to repayment of loans they depend on a group system. A number of loan takers make up a group and if one of them misses a payment, the entire group is held responsible. It is one of the reasons why Grameens defaulters are less than 1 percent. Due the pressure of the group the poor people are made to pay the installments despite any hardship they face.

It has worked well for Grameen. But it has a drawback as well. People will always blame Grameen for any pressure the group puts on the individuals.

As for the interest rate being high, the reason they give is that they have higher risks since they disburse loan without any collateral.

 

[Tiki Tam Tam]

Thanks; the details given by you all, even in driblets, is building up the picture and is very educative.

Any links (unbiased)?