Book Report: Banker to the poor

Book Report: Banker to the poor

Title: Banker to the Poor

author: Muhammad Yunus

topic: Micro lending and the battle against poverty

THe first attempt at lending happened in 1976

totl number of borrowers 2.5 million

95% of them are women

1181 branches

42,147 villages

12,000 staff

Total loans distributed since inception: 4 billion dollars or 175 billions of local currency

repayment rate 98 percent

starting in 1998 it self finances and no donors any more

income generating at 20%
housing loans at 8%
education loans at 5%

microloan programs should not fall into the trap of conventional banks and start looking at their borrowers as some kind of time bombs, ticking away and waiting to create big trouble on prefixed dates.

The realization that poor people alwasy pay back their loans, on some occasions they may take longer but pay they will.

All borrowers above 140 dollars contribute a dollar every month (mandated) to a pension fund, and after 10 years they will receive double amount guranteed.

Problem is it is brining too much inflow. 2 million dollars a month

The banks are categorized for morale like hotel stars

700 green stars for 100% repayment
500 blue stars for earning a profit
213 violet for generating surplus 
61 for brown stars for ensuring 100% of their children education
21 for red stars for taking 100% of their borrowers above the poverty line

Observing this phenomenon, one cannot but wonder how an environment can make people despair and sit idle and then, by changing the conditions, one can transform the same people into matchless performers

If people work harder they won't be poor. THis may not be always true. One has to create or facilitate an environment or an eco system

The poor must be made active players

Changes are products of intense efforts

Competes in a market place but inspired by a set of social objectives

He may earn a significant personal profit but it is a secondary consideration

Social enterpizes will be ranked based on social impact for every dollar invested

I see no reason why some socially motivated people will not dedicate their lives to building and operating social-objective-driven enterprises. They do this all the time in the name of politics.

I would like to see all barriers and protections around world markets disappear. It is built up in each nation in the name of the poor but it actually hurts them the most.

Let us leave them in the century that invented them. Let us take pride in human identity.

Like food, Credit is a human right

social consciousness can be as big a burning need as desire and greed

small loans
weekly payments
weekly meetings between borrowers and creditors
Mandated Groups of borrowers
Intense involvement of creditors (CRM ultimate)

discipline, unity, courage, and hard work
prosperity
Clean house
Grow vegetables
Plant trees during monsoons
keep families small
educate children
keep children and env clean
clean drinking water
fight social bigotry
shall not commit injustice
shall collectively undertake larger investments
ready to help each other
physical exercise in all centers

younger than 28 with a masters degree and no less than a b average can apply.

Unlike other commercial bank workers our staff members grow to consider themselves teachers. 

Name: aaa
age: 27
salary: $60.00 a month
bonus: one months salary twice a year
wakes up at 6, washes, prays, eats breakfast
7am, gets his bicycle, docs, bag from branch and pedals to a center
7:30 meets 40 bank borrowers
9:30 second center
11 visits borrowers at home
Noon back to office, fills out forms
1:30 lunch break
2 disburse funds 
3 send them to ledgers
4:30 tea
5 to 6:30 helps other centers and educational outreach
7:00 goes home, finishes paper work, and retires