Early Life and Education

4970 Words Dec 26th, 2012 20 Pages
Early life and education

Early years

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Muhammad Yunus at Chittagong Collegiate School, while visiting the school in 2003.
The third of nine children,[10] Yunus was born on 28 June 1940 to a Muslim family in the village of Bathua, by the Boxirhat Road in Hathazari, Chittagong, in the British Raj (modern Bangladesh).[11][12] His father was Hazi Dula Mia Shoudagar, a jeweler, and his mother was Sufia Khatun. His early childhood years were spent in the village. In 1944, his family moved to the city of Chittagong, and he was shifted to Lamabazar Primary School from his village school.[11][13] By 1949, his mother was afflicted with psychological illness.[12] Later, he passed the matriculation examination from Chittagong
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Hameed,[18] realized that the creation of an institution was needed to lend to those who had nothing.[19] While traditional banks were not interested in making tiny loans at reasonable interest rates to the poor due to high repayment risks,[20] Yunus believed that given the chance the poor will repay the borrowed money and hence microcredit could be a viable business model.
Yunus finally succeeded in securing a loan from the government Janata Bank to lend it to the poor in Jobra in December 1976. The institution continued to operate by securing loans from other banks for its projects. By 1982, the bank had 28,000 members. On 1 October 1983 the pilot project began operations as a full-fledged bank and was renamed the Grameen Bank (Village Bank) to make loans to poor Bangladeshis. Yunus and his colleagues encountered everything from violent radical leftists to the conservative clergy who told women that they would be denied a Muslim burial if they borrowed money from the Grameen Bank.[12] As of July 2007, Grameen Bank has issued US$ 6.38 billion to 7.4 million borrowers.[21] To ensure repayment, the bank uses a system of "solidarity groups". These small informal groups apply together for loans and its members act as co-guarantors of repayment and support one another's
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