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Grameen Bank ± Banking for the Poor

WHAT IS GRAMEEN BANK ?
Grameen bank, means the rural or The village bank It provides credit and financial services :
Exclusively to the rural poor in Bangladesh. without any collateral for creating self employment opportunities to quickly increase their income and empower the poor.

Objectives
‡

Extend banking facilities to poor men and women

‡ Eliminate the exploitation of the poor by money lenders ‡ Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh

Objectives(Contd)
‡ Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves. ‡ Reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income".

-.Rapid growth .

GRAMEEN BANK Covers almost the Whole Country .

A.Awards Received by Grameen Bank ‡ SWITZERLAND : Aga Khan Award For Architecture : 1989 ‡ BELGIUM : King Baudouin International Development Prize : 1993 ‡ BANGLADESH : Independence Day Award : 1994 ‡ MALAYSIA : Tun Abdul Razak Award : 1994 ‡ UNITED KINGDOM : World Habitat Award : 1997 ‡ INDIA : Gandhi Peace Prize : 2000 ‡ U.S. : Petersberg Prize : 2004 ‡ Norway : Nobel Peace Prize : 2006 .

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33 million members 123 Area Office .Organisational structure of Grameen Bank Each Centre made up of 8 Group of 5 borrowers each Head Office Group 50-60 Centres per Branch 18 Zonal Office 2565 Branch Office 8.

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‡ Grameencredit is based on the premise that the poor have skills which remain unutilised or under-utilised. It is based on "trust³. ‡ Grameencredit gives high priority on building social capital. ‡ Grameencredit is not based on any legally enforceable contracts. ‡ In order to obtain loans a borrower must join a group of borrowers.Grameen Credit ‡ It promotes credit as a human right. ‡ Simultaneously more than one loan can be received by a borrower. .

Higher Education Loan . Housing Loan 3.Grameen Bank loans Programme 1. Basic Loan 2.

Basic L a f r ecial r jects .

Housing loan .

Higher Education loan .

Scholarship Program of Grameen Bank .

Loan conditional ties specially suitable for the poor. .Essentials Features of Grameen Credit Delivery System 1 Exclusive focus on bottom poor. 2 3 Borrowers organised into small homogeneous groups.

Essentials Features of Grameen Credit Delivery System 4 Capable organisation and management system. 5 Loan portfolio to meet diverse development needs. .

Sixteen decisions.Essentials Features of Grameen Credit Delivery System 6 Social development programme. . .

courage and hard work --.discipline. unity. . We shall follow and advance the four principles of Grameen bank -.in all walks of our lives.1.

3.2. We shall not live in dilapidated houses . . We shall repair our houses and work towards constructing new houses at the earliest. Prosperity we shall bring to our families.

4. . We shall plant as many seedlings as possible. 5. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus. During the plantation seasons.

We shall minimize our expenditures. . We shall plan to keep our families small. We shall look after our health .6.

.7. We shall educate our children and ensure that we can earn to pay for their education.

9.8. We shall build & use proper latrines. . We shall always keep our children and the environment clean.

We shall use pitcher filter to remove arsenic. .10. We shall boil water before drinking or use alum to purify it.

nor shall we give any dowry at our daughters wedding. We shall not take any dowry at our son¶s weddings.11. . We shall not practice child marriage. We shall keep our centre free form the curse of dowry.

12. 13. neither shall we allow anyone to do so. . We shall collectively undertake bigger investments for higher incomes. We shall not inflict any injustice on anyone.

If we come to know of any breach of discipline in any centre. If anyone is in difficulty. We shall always be ready to help each other.14. We shall all help him or her. 15. . We shall all go there and help restore discipline.

.16. We shall take part in all social activities collectively.

Grameen Savings Schemes 3.0 New Savings Schemes Grameen Pension Schemes Fixed Deposits 7.Years Deposits Special Savings Funds Monthly Profit Schemes .

10 Indicators Every year GB staff evaluate their work and check whether the socio-economic situation of GB members is improving. GB evaluates poverty level of the borrowers using ten indicators. .

1997 Grameen Bitek 1998 Tulip Dairy 1998 Grameen Software Ltd.GRAMEEN FAMI Y OF BUSINESS ENTERPRISES FOR PROFIT Name of Company Year of Establishment Grameen Bank 1983 Gonoshasthaya Grameen Textile Mills 1995 Grameen Cybernet 1996 Grameen Phone 1996 Grameen Knitwear Ltd. 1999 Grameen IT Park Ltd 2000 .

Not for Profit Name of Company Grameen Trust Year of Establishment 1989 1991 1994 1994 1994 1995 (Technical & financial support for replication of Grameen approach worldwide) Grameen Agriculture Foundation Grameen Fisheries Foundation Grameen Uddog (Production. marketing and export of hand woven fabrics i.e. Grameen Check) Grameen Fund (A social venture fund for new entrepreneurs) Grameen Telecom (Providing cellular phone services in rural areas) .

wind power and biomass) Grameen Kalyan (Welfare programmes for GB members and staff) Grameen Shikkha (Educational programmes) Grameen Communications (Nationwide network for internet. solar pv.e. data processing services) Grameen Business Promotion Services Grameen Capital Management .Not for Profit Name of Company Grameen Shamogree (Marketing of Grameen products) Year of Establishment 1996 1996 1996 1997 1997 2001 1998 Grameen Shakti (Pilot testing and marketing of renewable energy products i.

Limited. Grameen Krishi Foundation Grameen Uddog Grameen Fund Grameen Grameen Communi.Grameen Himager Grameen Fisheries Grameen Trust Grameen Bank Grameen Kalyan Grameen Telecom Rural Health Programme Grameen Knitwear Grameen Phone Grameen Shamogree Packages Co.Shikkha cations Gonoshastho Grameen Textile mills Grameen Shakti Tulip Dairy .

e.Main Issues Before GB Today 1. Government policies) support to micro level credit for poverty alleviation. . Issue of Macro Policy (i.

Main Issues Before GB Today 2. Computer Training Centre Solar Energy Mobile phone . Issue of raising productivity through application of new technologies.

government institutions/ programs. Issue of improved co-ordination with government and non. Ministry of Industry Bangladesh Bank Finance Ministry Commercial Bank Agriculture Small Industry Ministry Government NGO¶S BRDB Grameen Bank PKSF .Main Issues Before GB Today 3.

particularly women and the poorest . Grameen Bank's objective is to bring financial services to the poor. ‡ Overarching objective of the conventional banks is to maximize profit. Grameen Bank is owned by poor women. generally men. ‡ Grameen methodology is not based on assessing the material possession of a person.Is Grameen Bank different ‡ Grameen Bank methodology is almost the reverse of the conventional banking methodology. ‡ Conventional banks are owned by the rich. it is based on the potential of a person.

‡ Grameen Bank branches are located in the rural areas. 97 per cent of Grameen Bank's borrowers are women. ‡ There is no legal instrument between the lender and the borrower in the Grameen methodology. . Grameen gives high priority to women. ‡ Conventional banks focus on men.Contd. unlike the branches of conventional banks which try to locate themselves as close as possible to the business districts and urban centers.

‡ Grameen system does not require the family of the deceased to pay back the loan.Contd. educational and health areas. ‡ Grameen system encourages the borrowers to adopt some goals in social. ‡ Conventional banks do not pay attention to what happens to the borrowers' families as results of taking loans from the banks. ‡ In Grameen. we see the poor people as human "bonsai". . ‡ Grameen Bank do not punish Borrower when he is taking more time in repaying the loan.