Loan markets in everything

by on November 10, 2010 at 2:25 pm in Economics | Permalink

Women in remote Korawan, 70 km from Allahabad, have come up with a novel bank which exclusively deals with goats – accepting the animal as savings and lending it out as loans.
       
"Prema and her friends hailing from Afrozi village have establish a bank which deals exclusively in goats," development block coordinator Subedar Singh told PTI.
      
In tough terrains of Mirzapur district, most of the people are engaged in crushing stone to earn a living.

"Wives of these people help them in crushing stones and breed two-three goats for additional income," Singh said.
       
"Though the area is best suited for goat breeding, no effort was made to establish it as a full fledged business activity," he said.
      
 "We provide goats to women having interest in taking up breeding as a full-time activity as loan. When a goat gives birth to kids, generally two to three in numbers, one of them is deposited with the bank again," Prema explained.
       
Goats in the bank are medically examined every week.
       
"In case a goat dies, then it is either replaced from the market or from the bank depending upon the availability," Prema said.

The link is here, the point is from Paul Hsieh and Jeffrey Williams should be happy.  The locale is in India.

Rahul November 10, 2010 at 10:43 am

Isn't using "remote" and "70 km from a big city" in the same sentence an oxymoron? Even in the Indian context.

blogfan November 10, 2010 at 11:02 am

reminds me of a recent Onion blurb: http://www.theonion.com/articles/microlender-fore

Rahul November 10, 2010 at 11:32 am

Well, foreclosures are nothing new for goats. Back in 2009 the Wall Street Journal ran this story about how the Lehman bankruptcy impacted the lives of innocent California goats.

cup November 10, 2010 at 12:30 pm

Is this really novel? Didn't Native Americans use shells for currency? This seems primitive, not innovative.

Interguru November 10, 2010 at 1:46 pm

If they are foreclosed on, the bank will really get their goat.

Asif Dowla November 10, 2010 at 1:53 pm

The Grameen Bank did this in its early days for the poorest of the borrowers who were afraid to borrow money. Later they used this tool as a means to rehabilitating the borrowers after a natural disaster.

Rob Ross November 10, 2010 at 4:06 pm

Not an oxymoron (a term comprised of two conflicting words), just redundant.

anonymous November 10, 2010 at 6:30 pm

Rob Ross,

The word you're looking for is "pleonasm".

It is sadly much more obscure in English than its cognate is in French (and possibly in other languages).

khc November 11, 2010 at 5:34 am

Bill – You beat me to it, but milk/blood is the dividend, a kid is a stock split.

anonymous November 11, 2010 at 5:45 pm

I'd like to note the phrase "wives of these people." I.e., the wives are not themselves people.

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