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Dr. Muhammad Yunus

Back in the 1970’s investors actually laughed at Muhammad Yunus when he told them about his plan that would offer very small loans (usually under $100) to help the poorest people of his native Bangledesh bring themselves out of poverty.  They said lending at such a small rate, to people who were unlikely to repay would never be profitable.  Yunus did it anyway.  Fast forward thirty years and the bank is not only profitable, but flourishing with $600 million in assets and 2,000 branches nationwide.

Even more important than the bank’s success is that of the people of Bangledesh.  With the help of Yunus’s microcredit program, millions of formerly poor have been able lift themselves out of poverty by starting businesses or increasing profits of an existing business operations. The microcredit system which offers small loans (hence the name) to groups of borrowers that repay in very manageable weekly increments, is based completely on community and trust and offers no penalties or legal action if payments are not made.  And it works!  Less than 2% of all loans are not paid back in full with interest.

In 2006 Yunus was awarded the Nobel Peace Prize for his work to end poverty, but he knows he’s not done yet.  He continues to train other financial institutions and governments to create similar programs around the world with the goal of erasing the concept of poverty from humanity forever.

-JH

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