Question

Please respond too this statement with 2 paragraphs on why you agree with this statement and providing additional information (Explanation):

Why do they lend primarily to women and what is the poverty reduction strategy in doing so? They seek out women by going door to door that need it and persuade her to take it to make her families lifestyle better. With this idea their focus was on women and at least half of their borrowers were women. With this concept of lending money to women vs men for their families they found out that it brought so much more benefit to the families. Since they saw this trend repeated for months, this was the inspiration for changing their policy from 50%-50% to focusing on women.

Answer 1

Lending to poor women is a powerful poverty alleviating strategy for many reasons. One is that women are in many poor households the head of the family. Men are either incapable of heading the family or may have abandoned the family. Men in poor households squander money on alcohol and gambling. The men also do not work hard as women and spend their time drinking and gambling. Women, on the other hand, work hard and support the family. They educate their children and try to give their children a better life. More importantly women save the money and have to hide the bank passbooks from men. That is why lending to women is empowering women and more productive.

Women buy fixed assets like land, house and other assets with the loan. The loan repayment record of women is also on time as compared to men. These are the reasons why lending to women is important.