The poor are a good credit risk, especially in the context of mutual responsibility systems. The poor, like all people, are the best judges of their own situation and know best how to use credit when it is available, especially when they are being supervised and encouraged by their peers. Credit programs for the very poor, when properly administered, teach and reinforce entrepreneurial behavior and self-sufficiency rather than promoting dependency. The sustainability and profitability of micro-credit programs in the developing world are achievable. Micro-credit programs are fairly easily replicated.
Borrowers demonstrate a remarkable ability to work their way out of poverty.
Micro-credit programs become vehicles for a variety of desirable social changes. Programs can grow to serve large numbers of poor people. The Grameen Approach The Grameen Bank approach developed in Bangladesh involves much more than the distribution and collection of loans. The process begins with Bank workers who travel to a village and spend time getting acquainted with the villagers. About a month later, a village meeting is held to explain the mission and organization of the Bank.