The Grameen Bank is a Nobel Peace Prize winning microfinance organization, located in Bangladesh. It has been established by Muhammad Yunus in 1983. It offers small loans, known as ‘’microcredit’’ or ‘’grameencredit ‘’ to the impoverished without requiring guarantees. The system of this bank is based on the idea that the poor have skills that are still under-utilized. The name Grameen is derived from the word Gram which means ‘’village’’ in the Bengali language.
The Grameen Bank began as a research scheme by Muhammad Yunus and the Rural Economics Project at University of Chittagong to test his techniques for providing credit and banking services for the rural poor. In 1976, villages neighboring the University of Chittagong such as Jobra became the first areas eligible for service from Grameen bank. The bank was introduced in 1979 to the Tangail District. And, it soon spread to various other districts of Bangladesh. October 2, 1983, the project was converted into a liberated bank by a Bangladesh government ordinance. By 2006, Grameen bank has reached a number of 2100 branches.
In fact, this bank existed because of the belief of a poverty-free world can be real. It’s for the people who are trying their best to abandon poverty. Also, it is for the people who have creative way of thinking but are not using it because of their lack of money. Since this idea came to life, poor people who are willing to work hard, so they can change their living status, will finally be able to achieve their goals in life. Furthermore, a study shows that 97 percent of the Grameen bank’s borrowers are women. This shows that Grameen bank is helping women to be more helpful among their families and the society. In addition, member’s children are given scholarships to well-known universities.
The Grameen Bank adopts a particular methodology in its credit delivery system. For instance, there is an exclusive emphasis on the poorest of the poor, and the borrowers are organized into...
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