In other words, on the Grameen highway, a borrower can routinely upgrade her loan size at each cycle of the loan. This is done on the basis of predetermined rules. She knows ahead of time how much of an enhancement in loan size is coming and can plan her activities accordingly. But if a borrower faces engine trouble (a business slowdown or failure, sickness, family problems, accidents, thefts, natural disaster, etc.) and cannot keep up with the highway speed, she has to quit the highway and take an exit. This detour is called a “flexible loan” or “flexi-loan.” It allows her to move at a slower
...more
