Credit Discipline and its Utility for Proper and Prophylactic Micro-Financing System: Assessing the Global Situation
To eradicate impecunious poverty throughout the world, Bangladesh first designed the procedural credit
discipline system through Grameen Bank to boost the upliftment of rural women by deploying its own techniques innovated
through a continuous ‘learning process approach’ in its specialized socio-economic and structural conditions available at the
wider laboratory areas at its field level. As group-based credit policies, the microfinancing model of Grameen Bank has now
been cloned to as many as 80 developing nations of the world, targeting the eradication of poverty among the hard-core poor.
This procedural credit discipline thus requires support for the total process of disbursement of funds and systematic
repayment of loans strategically designed to make the programme sustainable. It has been cautioned that if these steps of
credit discipline within the microfinancing framework are not followed properly, it may eventually destroy the main theme
of credit jeopardizing the whole system by itself. Thus, it is now ostensibly found that many of such microfinaning
programs outside Bangladesh are now experiencing problems and difficulties due to their ignorance about the procedural
techniques of credit discipline. The paper discusses the issues relating to credit discipline and suggests some
recommendations for microfinancing in general including the Grameen Bank and other organizations to make credit really
useful to the poor, without taxing them overburdened.