Where does the Grameen Bank work?

Grameen Bank provides small loans to the poor people in rural Bangladesh without requiring collateral. Based on a research project by economist Muhammad Yunus, the bank today serves more than six million poor families.

What other services does Grameen Bank provide?

Provides “welfare” to Grameen Bank staff and clients in the area of education, health and disaster relief, as well as credit to employees. A for-profit company. Finances rural industries and market their products, specially those produced in labour-intensive industries, in Bangladesh and overseas.

What kind of loans do members of SHG take?

(i) Loans to SHG are provided preferably in the form of cash credit and term loan as per requirement of SHG. Sanction of a cash credit/ overdraft system of lending for SHGs for a longer operational tenure of 3-5 years may therefore be adopted to permit SHGs to have larger loans in tune with increasing pooled savings.

Why Grameen Bank targets poorest of the poor on lending?

Grameen Bank believes that lack of access to credit is the biggest constraint for the rural poor. Grameen Bank targets and mobilizes the poor and creates social and financial conditions so that they receive credit by identifying a source of self-employment in familiar rural non-farm activities.

What is the contribution of Grameen Bank to the society?

Grameen has created a new class of women entrepreneurs who have raised themselves from poverty. Moreover, it has improved the livelihoods of farmers and others who are provided access to critical market information and lifeline communications previously unattainable in some 28,000 villages of Bangladesh.

How Grameen Bank helps in reducing poverty?

The Grameen Bank seeks to empower people to overcome the oppressive conditions of exploitation, poverty, and ignorance. The Bank provides credit without collateral to the poorest of the poor who have no assets, and assists poor women to escape extreme poverty.

What is the difference between the bank loan and through SHG?

Answer : Bank loan advances the loan by mortgaging any property as collateral, but SHG advances their loan without any collateral. The rules in the banks make the loan procedure rigid whereas the SHGs give loans to the members itself and without any rigid procedures.

How does SHG become eligible to take loan from bank?

1 The eligibility criteria for the SHGs to avail loans : SHG should be in active existence at least since the last 6 months as per the books of account of SHGs and not from the date of opening of S/B account.

How did Grameen Bank help?

Muhammad Yunus, (born June 28, 1940, Chittagong, East Bengal [now Bangladesh]), Bangladeshi economist and founder of the Grameen Bank, an institution that provides microcredit (small loans to poor people possessing no collateral) to help its clients establish creditworthiness and financial self-sufficiency.

What problems did the Grameen model face?

The Grameen banking model in Nepal faces challenges in the areas of policy, costs, governance, institutional capacity, resource management and political insurgency.

How does Grameen Bank make profit?

Yunus: Many branches of Grameen Bank have more money from savings of borrowers than from outstanding loans. Having external money slowed us down from our model. Akula: Yes you increase profits by pushing up loan sizes and raising interest rates.

What did Grameen Bank contribute to the society?

ganizing and training the poor in groups, Grameen Bank has created both social and financial preconditions that enable the poor to receive loans based on group performance. Grameen Bank also provides social development inputs to the poor so as to make them individually and socially accountable.

What is Grameen Bank?

Grameen Bank- At a Glance Grameen Bank is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or “grameencredit”) to the impoverished without requiring collateral.

What are the rules of Grameen Bank for beggars?

Existing rules of Grameen Bank do not apply to beggar members; they make up their own rules. All loans are interest-free. Loans can be for very long term, to make repayment instalments very small. For example, for a loan to buy a quilt or a mosquito-net, or an umbrella, many borrowers are paying Tk 2.00 (3.4 cents US) per week.

What types of loans does Grameen provide?

Grameen has diversified the types of loans it makes. It supports hand-powered wells and loans to support the enterprises of Grameen members’ immediate relatives. It has found that seasonal agricultural loans and lease-to-own agreements for equipment and livestock help the poor establish better agriculture.

What is the loan recovery rate of Grameen Bank?

Loan recovery rate is 98.28 per cent. Grameen Bank finances 100 per cent of its outstanding loan from its deposits. Over 59 per cent of its deposits come from bank’s own borrowers. Deposits amount to 137 per cent of the outstanding loans.