The First Micro Lending Model that Changed the Lives of Millions of Poor People

Fail to meet the eligibility criteria of commercial banks

Unable to provide any collateral securityWant loan at low interest ratesFlexible repayment schedule

Problems Faced by the Poor People

Mohammed Yunus was economics professor at the University of Chittagong, Bangladesh

Experimented with a lending model designed to suit the needs of the poor rural people

Started Grameen Bank in 1983 as a retail bank for the poor

Awarded Nobel Peace Prize in 2006

The Man behind the First Microfinance Bank

Provide banking facility to the poor men and women

Prevent the poor people from being exploited by the moneylenders

Create employment opportunities for rural people

Empower the women to earn and manage their own finances

Key Objectives of Grameen Bank

The lending model designed to suit the needs of poor women

Encouraged women to form self-help groupsLoans at low interest rate and with flexible

repayment scheduleThe Grameen Bank earned profits as an

independent entity

Unique Features of the Micro Lending Model

1993: Healthcare services for the poor rural people

1996: Grameen Shakti to promote renewable energy in remote villages

1996: Grameen Kalyan, a health insurance product for the poor

1996: Grameen Telecom

Successful Projects Launched by Grameen Bank

Grameen Phone became the leading telecommunications service in 2006

8.4 Million members95% of Grameen shares are hold by its

membersNearly all its members are womenDisbursed $10.2 billion in loans since 1983$1.5 billion in savings and $984.34 million in

outstanding loans

Major Achievements of the First Microfinance Bank

2010: Press reports accuse Grameen Bank of financial impropriety

2011: Bangladeshi government appointed a five member committee to investigate the charges

2011: Bangladeshi government appointed a new Chairman for Grameen Bank

2012: Prof. Yunus lost his appeal in High Court2012: Prof. Yunus lost his final appeal in

Bangladeshi Supreme Court

Recent Controversies

Many organizations in developing countries implemented the lending model.

Indian companies promote the model as an alternative to charity India.

Organizations use latest technology to raise funds.

Millions of poor people get financial assistance at low interest rates.

Impact of the Grameen Bank Lending Model