Thursday, January 27, 2011

My Diary ..@9pm -Microfinance, Financing for The Poor...

It really fun when do some shopping for groceries today. For me is a therapy after 30 day work stresses.. Shopping is one of my way to manage my stress since I am quite stressful these days due to lots of things especially the price hike of consumer goods... I am thinking of quitting my job and start small business but no capital to roll.. Maybe I start looking for funder  to get financing.. Loan Shark argghhhh..... these people really bites... They are like poisonous snake...Blood sucker... Our government are powerless to overcome this social problems.

But one guy says " In every difficulties, there are opportunities"... These is what Loan Shark or Money Lender is doing.. Those people fell in financial difficulties, they come and offer for financial assistance.. If they take the offer, then they would in trouble.. The life agony of being harassment , humiliation , embarrassment etc...

To make it worse is that difficulties to get a loan from our financial institutions... Too many red tabs.Asking for collateral...To many backlog procedures.. Risk evaluation factor.. bla bla bla.. No friendly procedure..For the rich, such obstruction are easy to overcome but what happen when somebody from the poor family seeking for the loan?.. The least he will get is a letter of rejection from the bank... This is the most case scenario that happening in our country.. We expect by having a good lending policy will ease the burden of the poor to get a better a loan to start up their business and yet it never help much ...

It reminds me of one guy named Prof.Muhammad Yunus a Bangladeshi, who founded Grameen Bank just to provide a micro-financing to the poor people of Bangladesh.

Let me share with you all  his real success story....



As we all know that Bangladesh is  a Third World Country status with most part of the country is still under developed...Poverty becomes one of the major problems that its government is facing. The financial instruments provided by the banks are affordable to the better off farmers who then lend the money to the group so called entrepreneur too poor. .. The story of micro-finance started when Muhd Yunus extended a tiny loan to groups of women in Zobra village (the outskirt of Chittagong), 42 of them working as an artisan with 62 cent each  to buy  the supplies they need for a living with concentration on a group of lenders rather than individual which each member of the group shall guarantee the other member to make repayment to the bank.

This was a dramatic step of micro-financing evolution and revolutionized the financial systems in other developed countries.Grameen Bank become one of the world famous bank that was successfully implementing micro-financing in Bangladesh with 98% repayment collection and cost recovery interest rates.

This is what social transformation Grameen Bank has made to the people of Bangladesh:

1. The total membership of the bank reaching 5.8 million families (which mean 29 million people) and all of them are poor. Among the members, 3 million families are out from poverty.
2. 100% of children under Grameen's member families are attending a primary education with 10,000 of them entering universities, medical colleges, engineering institutes as well as other higher educational institutions.
3. Those participated in Grameen's program has increased in household income from 28% to 112%!!!!..
4. The purchasing power of the female member of the families for goods and services also increased by 18%.
5. Some of Grameen member even can finance small project using their equities and amazingly is that the rate of wages also increased by 21%.
6. The member of Grameen families now afford to support their children's educations.
7. The micro-finance household also has better nutrition, health practices and health outcomes leading to better living conditions and preventive health care.

As we can see that Grameen Bank has contributed so much in the improvement of the quality of lives for the people of Bangladesh by increasing their household income,build assets and reduce their vulnerability to crisis. This lead to a better nutrition and health outcomes.

Amazingly, in Bangladesh 65% of the people live on less than USD1.00 per day and own no land but yet Grameen Bank recorded 4.3%  return in 2000 with  default rate close to nil...

REALLY AMAZING!!!!.. Now can we tell the world , which bank in Malaysia that made such achievement to the poor Malaysians?....

“We have received a lot of things from the international community, but we given the model of microcredit to the world”. - Prime Minister Begum Khaleda Zia



THINK...

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