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grameen banking-micro finance -helper of the poor?
is this really helping the poor, by training them skills and livelihood projects then providing them loans with interest as capitals with NO collaterals. But in order to get a loan, one has to at least have 10 or more persons to serve as co makers or guarantors in case one fails to pay. This is pure and simple banking scheme to get revenues, no different to lending corporations with collaterals. What if the borrower's business suffered losses due to poor sales, robberies, disasters or natural calamities, he still has to pay the principal amount plus interest, worst, sell his meager property or provide services to put off the debt, the more he is stacked in poverty.Why not instead of the bank lending, it join hands with the"borrower" in doing business as partnership or joint venture status, and agree on a profit and loss sharing condition, a win-win situation? This is supposed to be how islamic banking works and i thought muhammad yunus is a muslim.
Public Comments
- Good point.
- I can see that you do not have information about the banking sector in Bangladesh. These are no different than India, Pakistan, Japan or USA. They would give and take interest and your terming it as 'Haram' is quite right in the sense of religion. But again in this 21st century when the whole world is based on 'interest' systems then why exclude you unilaterally? Of course, the 'interest' those were made 'haram' forbidden in the early days of Islam were when cut-throat interest rate would make people bankrupt and they would become pauper. That's why 'business' was made "Halal" and 'Interest" was made "Haram". But the reality has changed now and you do not ask for yearly interest at 100% of so. Things are made so much bearable than you are encouraged to start a business after taking bank loan and paying interest. About Islamic Banking, they also take interest in disguise. Otherwise, how can they make money? Your last line "This is supposed to be how Islamic banking works and I thought Muhammad Yunus is a Muslim" is either from ignorance or you are mocking Grameen banking and Dr. Yunus. I would suggest that you may pay a visit to Bangladesh and find the finer points of Grameen Bank as well as how the other Banks are operating so that you do not end up with speculating. Chances are, you may be a convert of Grameen Bank philosophy, if not a promoter of that idea. Calling the 66-year-old Bangladeshi a ‘modern Ghandi,’ the Norwegian Nobel Committee saluted his efforts ‘to create economic and social development from below.’ ‘Lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty. Micro-credit is one such means,’ said Committee Chairman Ole Danbolt Mjøs, adding that such initiatives ‘advance democracy and human rights.’
