GB introduced collateral free lending to the poor, says Yunus
Nobel laureate Muhammad said on Wednesday that Grameen Bank introduced collateral free microcredit lending with the social orientation to help the poor get out of poverty.
That way, he said, Grameen Bank’s microcredit lending was different from microcredit programmes of many institutions who lend for profit.
Speaking to students of five schools at a prize distribution ceremony hosted by American International School Dhaka on its campus, Yunus said Grameen Bank was the first microcredit institution which dropped the collateral system for lending to the poor because they could offer no collateral to borrow from a bank.
He said that social business has nothing to do with business for making profit.
‘Grammen Bank was the first organisation which de-linked collateral system in the banking and social business de-linked business from just making profit’ Yunus said.
The Nobel laureate also said, in a social business, the investors cannot take any dividend and the purpose of the company’s investment is purely to achieve one or more social objectives.
He said that no personal monetary gain is desired by the investors in a social business.
American International School Dhaka, in collaboration with Yunus Centre hosted the day long Social Business Event.
Yunus also handed in awards to the winners of Social Business Plan Competition for high school students.
Maliyat Aniqa Noor a student of International School Dhaka won the award.
Students from AISD, ISD, Scholastica, Sir John Wilson School and Australian International School attended the session.
A number of social business institutions put on display their products as well as their booklets explaining their programmes at 15 stalls.
Shaundele Leatherberry, high school principal of AISD also spoke at the session attended by several ambassadors and high commissioners besides other guests.