Grameen Bank

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
? &nb ...
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