Grameen Bank: a Successful Story Lecture 8 My whatsapp +94713888753 Background •1970s, over 70 percent of Bangladesh population were living below poverty line •In 2021, 14 percent live below poverty line and ranked as the world’s 8th population •Dr. Muhammad Yunus •In 1976, he founded Grameen Bank, a so-called “bank for the poor,” with just 27 USD. •The bank provides people access to small loans without the need for collateral. Since its creation, Grameen Bank has given loans totaling over 3B USD to 7 million people. •According to the bank, among those who received a loan, over 50% escaped from poverty. Their community-based monitoring system helped the bank reduce the costs and achieve a high repayment rate of over 90%. • • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-2.jpg?t=1.1 .9 Grameen Bank as a value creator •Grameen Bank is founded on the principle that loans are better than charity to interrupt poverty •It maintains the belief that people have endless potential, and unleashing their creativity and initiative that helps them end poverty •Grameen has offered credit to classes of people formerly underserved: the poor, women, illiterate, and unemployed people •Grameen's objective has been to promote financial independence among the poor. •GB encourages all borrowers to become savers so that their local capital can be converted into new loans to others • Grameen bank (intern) •It targets the poorest of the poor, with a particular emphasis on women, who receive 95 percent of the bank’s loans. •Women traditionally had less access to financial alternatives of ordinary credit lines and incomes. •They were seen to have an inequitable share of power in household decision making. •Grameen Bank is best known for its system of solidarity lending. •The Bank also incorporates a set of values embodied in Bangladesh by the Sixteen Decisions We shall follow and advance the four principles of Grameen Bank •1. Discipline, Unity, Courage and Hard work – in all walks of our lives https://grameenbank.org/wp-content/uploads/2015/11/16c.jpg •2. Prosperity we shall bring to our families https://grameenbank.org/wp-content/uploads/2015/11/16b.jpg 3. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus. • https://grameenbank.org/wp-content/uploads/2015/11/16d.jpg 4. During the plantation seasons, we shall plant as many seedlings as possible • https://grameenbank.org/wp-content/uploads/2015/11/16e.jpg 5.We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health • 16f 6. We shall educate our children and ensure that they can earn to pay for their education • 16g 7. We shall always keep our children and the environment clean • 16h 8.We shall build and use pit-latrines • https://grameenbank.org/wp-content/uploads/2015/11/16i.jpg 9. We shall drink water from tubewells. If it is not available, we shall boil water or use alum • https://grameenbank.org/wp-content/uploads/2015/11/16j.jpg 10. We shall not take any dowry at our sons’ weddings, neither shall we give any dowry at our daughters wedding. We shall keep our centre free from the curse of dowry. We shall not practice child marriage • https://grameenbank.org/wp-content/uploads/2015/11/16k.jpg 11. We shall not inflict any injustice on anyone, neither shall we allow anyone to do so • 16l 12. We shall collectively undertake bigger investments for higher incomes. • https://grameenbank.org/wp-content/uploads/2015/11/16m.jpg 13. We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her • 16n 14. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline • 16o 15. We shall take part in all social activities collectively. • 16p • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-6.jpg?t=1.1 .9 https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-7.jpg?t=1.1 .9 Loan process • Microcredit and Social Business Movement as Catalyst for Poverty Eradication: The Grameen Experience - Research leap • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-8.jpg?t=1.1 .9 • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-9.jpg?t=1.1 .9 • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-10.jpg?t=1. 1.9 • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-11.jpg?t=1. 1.9 • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-12.jpg?t=1. 1.9 • https://reader026.fdocuments.net/reader026/reader/2021100607/54bdbb034a795923168b464e/r-13.jpg?t=1. 1.9