Lending to people that do not present the traditional borrower's profile (poor
people, unemployed...) small amounts of money (compared to the average
amount lent by commercial banks in these countries) for
productive projects are the main characteristics of micro credits.
professor Muhamad Yunus was the first one to have lent to poor people
in Bangladesh so they could break the vicious circle of borrowing,
selling at very low prices their production to the lenders and borrowing
again to be able to buy some new raw material...
been the initiator of a new perception of credit worthiness of poor
people and original garanties to avoid repayment problems
structure very close to the borrower
structure where borrowers could not only pressure bad payers but also
help each other
installment for a better follow-up and quick actions in case of
credit and saving
high repayment rate of Grameen speaks for itself...