Banking On The Poor – Bangladesh

April 1997
The Grameen Bank has saved the lives of hundreds of women. Its founder, Muhammad Yunus, believes it can end world poverty: “There is no reason why poverty should be here. This is a rich country – 120, million energetic, hardworking, intelligent people. They can change the world.” Equipped with such a vision, Yunus set up a loaning bank for the poor. Fourteen years later, two million Bangladeshis have been able to start their own businesses. Aisha is one of Grameen’s success stories. Dressed in a fuchsia pink sari, she chants with other Grameen borrowers: “unity, labour discipline”. Originally so poor she couldn’t provide food for her children, eight years later, she owns 00 worth of weaving looms. She takes widow, Poribanu, to the bank building where she signs for a loan for 0. The bank believes women to be more credit worthy than men: they think long-term. Despite the finance minister’s argument that money should go into infrastructure, the charismatic Yunus claims that this does not directly benefit the lives of the poor people. Poribanu remains convinced that she “god willing, can make further progress”.

Produced by ABC Australia
Distributed by Journeyman Pictures

25 thoughts on “Banking On The Poor – Bangladesh

  1. hahahhahahaha dickhed!! atlest bangladesh still exists!! luk at PORKISTAN
    ders nuffin left of it

  2. If they have such a high repayment rate, why is the interest on the loans
    at 20%? Is Grameen Bank’s overhead that high and why?

  3. The interest rate question is actually a lot more complicated that it
    appears. It is interesting to note that a Consumer Action credit card
    survey from July 2008 of 41 American credit cards from 20 banks pegged
    purchase interest rate average at 13.54 percent, and 22.75 percent on the
    high end. High repay rates or no traditional bank thinking holds micro
    clients high risk (and not without cause) and one could argue given that,
    loan size and other factors that a 20% interest rate is not overkill.

  4. @nacholibre48 From what I know about Grameen,the default rate is actually
    very low.Compared to interest rates with moneylenders,which are 20% per
    month or even per week,rates of 20% for the whole credit period of 1 year
    is comparably low.But it enabled Grameen to extend the credit scheme to
    millions of people

  5. 20% effective interest rate is not high at all. This is because apart from
    pure personal consumptions by the borrowers, if the borrowers used it to
    trade textiles among villages in the thousands of districts in bangladesh,
    the gross margin is at least 100%-200% for consumers goods. This is
    especially so if the merchandise market is inefficient in rural regions. So
    it is fine in rural economy in south asia.

  6. No no..you got it wrong. Not high default rates. If you listen to what
    Muhammad Yunus said, the interest earned is recycled back into Grameen Bank
    (after paying the rural bankers). It is a snowball effect without the harsh
    treatment of loansharks’ harrasment. He used peers’ pressure in his
    collections. But obvious as human is, there is 2% business risk.

  7. Hey guys, I just want to recommend you read Profesor Yunus’s book, ” Banker
    to the Poor”, before comenting such ignorant and insulting things. The
    Grameen Bank and the concept are too important and valuable for the
    eradication of poverty around the world to let them be dirtied by people on
    youtube.

  8. It is also important to consider the inflation rate in the country. 20%
    interest seems high but if inflation is high the bank will need to charge
    high interest on the loans otherwise the capital amount borrowed will soon
    shrink due to inflation and make it impossible for the bank to continue
    lending to the poor.

  9. ►im just saying the reality if bangladesh stayed with pakistan they would
    not be in the condition they are in today◄ Yh they’d be infinitely shitter
    and on their way to extinction. Pakistan has much more land space &
    resources, as well as a valuable geo-strategic position (up until now);
    hence hefty foreign aid/investment. That’s why they can afford to be so
    stupid and fuck up as often. The reality is that BD is a (moderate) success
    given their position & history. On top of which Pak looted them

  10. Most of that $39bn was siphoned off into the pockets of Bangladesh’s
    corrupt politicians and meanwhile the millions of destitute are left to
    fend for them selves.

  11. dr younos jodi bangladese na thakto tahole sadaron manuser moron
    hoyto………allah amader rokkha koron……………..

  12. dr,yunus is g8 one,,, i pray for him,,,everytime,,,i like these people who
    such a good mind,good thinking, he is our proud,whetever somebody says
    anything i don”t care, we just love him.

  13. This is 1997. Today the population is 155 million and by 2050 its estimated
    to become 250 million!!! All this in a country the size of US state, Iowa.

    And when global warming kicks in, experts predict that most of the limited
    land in Bangladesh will become submerged.

    I can only with wish my condolences to the Bangladeshis. Tough future
    ahead.

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