The Bank should go to
the poor women and not expect the poor women who are busy, diffident and insecure to come
to the Bank.
The poor women are
economically active and therefore they are bankable. They should not be considered
unbankable.
Since their economic
enterprises are small, tiny, they could be expected to repay the loan through small, tiny
doses. This method has enabled and can enable almost 98% recoveries.
These poor women are
vitally concerned with livelihood of their households. Therefore, they are the most
eligible borrowers though in mainstream banking they have been left out.
Bank should look at all
aspects of their borrowers and so should be prepared to advance diverse kinds of loans for
a variety of requirements.
Trust in the poor is
the sanction for lending. If trust is there, paper work, legal instruments and collaterals
are secondary, most often be dispensed with.
Logically, neither the
lawyer nor the court need to be used for recovery.
Borrowers are also
savers that we should not forget. Borrowers become greater savers as their small
businesses get established.
Through micro savings,
micro credit, micro insurance the poor women are set on the path of self reliance.
Organisation of these
poor women is the best guarantor, member sisters giving moral strength and confidence to
each other.
The relationship
between the Bank and the tiny borrower is not confined to one transaction. It is a
continued relationship of mutual trust.
Big disasters like
famine, flood, riots or small disasters accidents, deaths, deep illness can completely
upset the life of the poor making it impossible for them to be sustainable. In such
circumstances the bank should not leave them to their fate but give them the support to
get over the setback. Once rehabilitated they are bound to recover their stability.
Therefore, banking and
financial services should include not only savings and credit but also micro insurance.
Development through
micro banking can be slow. But it is a sure way to development of the poor.
To organise effective
and successful banking with poor it requires barefoot bankers with a sense of commitment.
The usual attitude associated with ‘suited-booted’ bankers and bureaucrats has
to be given up.
Such bankers’ work
is very little in office, more in the field. They have to do a great deal of field work in
the borrowers’ households, markets and workplaces. This gives knowledge to the banker
and trust to the borrower.
The young joining such
bank should be properly trained to understand and serve the poor.
There should be an
atmosphere of open discussion and regular critical self examination in staff meetings.
The Bank should be open
for the poor women of all communities because integration is the essence of poverty
alleviation.
