Due Diligence - Errata

Page 49 In footnote 39, the page number should be 190, not 145.

Page 103 The sentence describing compulsory savings in the original Grameen Bank credit model contains two errors:

1. The stated purpose of the Grameen Emergency Fund was not to "guard against defaults" but to provide life insurance to members.
2. It is not correct to say that Grameen members could only access the Group Fund when they departed. In fact, members lost access to it when they left.

Thanks to Alex Counts for pointing out both errors. The spirit of the sentence stands, which was to emphasize the restrictive nature of Grameen's saving services before Grameen II. Institutionally, the Emergency Fund could still functioned as a bulwark against the financial risk of default. The use of the fund to aid members after natural disasters, for example, was a way to assure steady repayment on paper in times of duress. See page 6 of this report. As for the Group Fund, members had limited individual control over how their contributions to the Group Fund were used. See page 13 of this report and page 22 of The Poor Always Pay Back.

Page 135 It is not the case that Grameen Bank members were ever "required to borrow." The reality on the ground was probably that members were variously encouraged, expected, or pressured to do so; but that is a separate matter from formal rules.

Page 165 "Morduch's 1999 analysis" should be "Morduch's 1998 analysis."

Page 273 "because microcredit is generally safe in moderation and encompasses more than microcredit" should be "because microcredit is generally safe in moderation and microfinance encompasses more than microcredit." Thanks to Robin Tibor Schirrmeister for spotting this.