How has a credit union in Sri Lanka serving daily labors with an average income of USD$28/month, average savings of USD$ 28 per member and an average loan size of USD$253 been able to reduce delinquency (portfolio at risk and 1day past due is delinquent) from 35% to 0.88%? Before the loan is late they remind borrows that its due. Allow a 5 day grace period then send a letter to the borrower and co-signer. No loans are granted to a co-signer of a delinquent loan. The credit union's Board of Directors went around the village and knocked on the doors of delinquent members to build relations and understand their situation. If no problems were present then the loan was due the next day. They charged loans against savings in some cases. They took 10 loans to court for collection and charged off 3 against provisions. Provisions are 2% of total portfolio.