Grameen Bank Background:
? Grameen bank was started in 1976 by Prof. M Younas
? They started an action research project at Jobra village
? It was extended to Dacca and subarls in 1978
? Till 1978 the funding was coming from commercial bank and capital bank.
? Grameen project was given the charter of Grameen Bank.
? By August 2007 there are 7.27 million borrowers of Grameen bank and 97% borrowers are women’s
? They have 2459 branches and they are providing services to almost 80000 villages.
? These villages constitute 95% of the rural population of Bangladesh.
Objectives of Bank Are:
? Extend bank services to rural poor
? Eliminate exploitation of poor by money lenders
? Create opportunities for self employment
? Give opportunity to disadvantage group i.e. women
? Banking/ reversing the viscous circle of poverty by injecting credit.
Main features of Credit Delivery System:-
1. Exclusive focus on poorest of the poor:-
? Eligibility criteria:- Either landless or household having less than one acre of land.
? Clear focus is on disadvantage group i.e. women
2. Borrowers are organized into small homogenous groups:-
? Group Solidarity:- All are of the same social status.
3. They have special loan conditionality:-
? Small loan without collateral
? Repayment in weekly installments
? Eligibility for subsequent loan depends upon repayment
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