Banker to the Poor: The Story of the Grameen Bank

This is my first try on auto biography. Beautifully inspiring book! I loved it to the core. It gave me another way to think about poverty and wealth and capitalism. Fills me with lots of practical hope and confidence. Its all about the courage of single person that can change the universe. This is a story of a man who thinks outside the box and never gave in to criticism nor did he stop at the borders of Bangladesh. It's much more than just economics, about human spirit and most of all, having faith. Its more about Microlending that about Muhammad Yunus. I like the idea of empowering women and the fact that banks should not only be for those who 'have' money.

This is how the existing model of loans in most of the commercial lending institutes or Banks work. Borrowers approach the bank for money, they are asked for income proofs, paper work and collateral (guarantee), which as per the author makes it ‘anti-poor’ and ‘anti-illiterate’. The more you have the more you get; if you don’t have it, you don’t get it’. For the poor however, then the only option is to approach local middlemen who ofcourse charge higher interest rates. If payments are not done – the mortgaged assets are seized and they end up doing slavoury for their entire life. It is said 'poor fall into a trap and death is the only way they can get out.’

How Microcredit in Grameen Bank works:

1) Loans are given out only to the most destitute.

2) Loans are given only to women, by engaging them in self-help groups.

3) Loan payment schedules are fairly simple and repayment amounts are small

4) Continuous visits to assess & assist them in any problems.

5) No paperwork; No collateral is asked for.

Overall, a beautiful read.

One Excellent quote in this book

If you take the speed of a horse, the majesty of a lion, the courage of a tiger and the elegance of a deer, in theory you might have a super animal,but in practice it might never get off the ground.

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