satya - Friday, June 29, 2007 8:36:34 AM

Title: Banker to the Poor

Title: Banker to the Poor

satya - Friday, June 29, 2007 8:37:42 AM

author: Muhammad Yunus

author: Muhammad Yunus

satya - Friday, June 29, 2007 8:38:01 AM

topic: Micro lending and the battle against poverty

topic: Micro lending and the battle against poverty

satya - Friday, June 29, 2007 8:40:00 AM

THe first attempt at lending happened in 1976

THe first attempt at lending happened in 1976

satya - Friday, June 29, 2007 8:40:17 AM

totl number of borrowers 2.5 million

totl number of borrowers 2.5 million

satya - Friday, June 29, 2007 8:40:31 AM

95% of them are women

95% of them are women

satya - Friday, June 29, 2007 8:40:44 AM

1181 branches

1181 branches

satya - Friday, June 29, 2007 8:41:01 AM

42,147 villages

42,147 villages

satya - Friday, June 29, 2007 8:41:09 AM

12,000 staff

12,000 staff

satya - Friday, June 29, 2007 8:41:43 AM

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

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

satya - Friday, June 29, 2007 8:41:59 AM

repayment rate 98 percent

repayment rate 98 percent

satya - Friday, June 29, 2007 8:42:43 AM

starting in 1998 it self finances and no donors any more

starting in 1998 it self finances and no donors any more

satya - Friday, June 29, 2007 8:43:43 AM

three kinds of loans

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

satya - Friday, June 29, 2007 8:48:20 AM

disruptive idea

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.

satya - Friday, June 29, 2007 8:49:32 AM

Pension savings account

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.

satya - Friday, June 29, 2007 8:50:11 AM

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

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

satya - Friday, June 29, 2007 8:51:16 AM

The banks are categorized for morale like hotel stars

The banks are categorized for morale like hotel stars

satya - Friday, June 29, 2007 8:53:50 AM

star distribution

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

satya - Friday, June 29, 2007 8:56:44 AM

Real Gem in All this

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

satya - Friday, June 29, 2007 8:59:17 AM

His other observations

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

satya - Friday, June 29, 2007 9:01:35 AM

Objectives of a social enterprenuer

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

satya - Friday, June 29, 2007 9:03:48 AM

Interesting take on politics - thinkers and doers for public good

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.

satya - Friday, June 29, 2007 9:04:49 AM

on protectionsim

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.

satya - Friday, June 29, 2007 9:05:44 AM

Passports and visas are a 20th century concept

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

satya - Friday, June 29, 2007 9:06:07 AM

Like food, Credit is a human right

Like food, Credit is a human right

satya - Friday, June 29, 2007 9:07:41 AM

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

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

satya - Friday, June 29, 2007 9:12:16 AM

Primary stand outs

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

satya - Friday, June 29, 2007 9:15:10 AM

16 decissions

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

satya - Friday, June 29, 2007 9:18:16 AM

qualification for a bank manager

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

satya - Friday, June 29, 2007 9:19:26 AM

teachers

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

satya - Friday, June 29, 2007 9:27:18 AM

A typical worker

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