Payday Pundit

Saturday’s Wall Street Journal had a very interesting article on Muhammad Yunus, who won the Nobel Peace Prize last year, for his company which offers small loans (known as microcredit) to women in third world countries.  Without Yunus, these women would not have been able to get a loan from the traditional third world lenders who discriminate against women.  Yunus’ loans have helped thousands of women start small businesses allowing them to raise their families free from poverty, hunger and destituteness.

Yunus’ company, Grameen is now operating in the United States in the inner-city of New York.

What caught our attention was some comments made by Yunus about the importance of accessibility to short-term credit.  His points are strikingly similar to what payday lenders also believe. 

• “There is no need for collateral, credit-history checks, legalities or complicated paperwork. Just credit, plain and simple.”
• “Mr. Yunus would argue that in making credit more easily accessible, he is helping guarantee a fundamental human right.”