If you are one who doesn’t have a good credit and would like to correct that, you will have a hard time taking another loan from any banking institution. Nonetheless, Muhammad Yunus gave this opportunity to these type of borrowers and he had been doing it for over 30 years. He became the banker to people in hardship.
Muhammad Yunus – Banker to the Poor
His program in microfinancing lends small amounts of money, the cheapest loan, goedkoopste lening, to a few of the poorest citizens of the world. His microfinancing program has triumphed him in a Nobel Peace award in the year 2006. It has and paved his standing as the foremost social entrepreneur of the world. Today, after assisting countless of people in poverty to somehow work their way to a better lifestyle in Bangladesh, he is now reaching out to people in poverty in Britain.
Over the following Year, Professor Yunus wishes to set a branch of his Bank within the Glasgow area which will provide credit to approximately 4,000 individuals who might otherwise struggle to obtain it.
His clients will likely be perennially jobless plus the type of individuals whose credit scores are so undesirable that they will be struggling to enroll in a mobile phone agreement. However, Professor Yunus is confident the cash will ultimately be paid back.
“I lend to the kind of people that financial institutions ignore. Anywhere there are loan sharks, pawn sharks, people paying the money back at exorbitant rates, that’s where we’ll be. These people may not be considered credit-worthy by the banks, but over the last 34 years [we have found] that our borrowers are just as creditworthy, just as eager to pay back what they have been lent.”
source: The Independent from the Bangladeshi capital, Dhaka.
His financing approach is straightforward and counter-intuitive towards the traditional western banking structure. Within the last few 30 years, Yunus has given loans in small amounts of cash to a few of the poorest residents Asia, individuals who would in any other case be forced to use loan sharks with interest rates that hold them imprisoned the bars of poverty.
These small loans are generally granted to women, who are regarded to be more monetarily dependable, and in organizations, so they all motivate one another to meet payment commitments. There is absolutely no collateral against the loans if the borrowers make a default in payment. Interest rates are similar to leading banks in the nation.
Technically there is no insurance or guarantee for repayment of loans but everything is based on trust and confidence.