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A small experiment begun
in Bangladesh has turned into
a major new concept in eradicating
poverty…
How microcredit works

Microcredit is
one of the most
successful and
sustainable
solutions in the
fight to eliminate
world poverty. It
has a proven
structure and an
impressive track
record.

The profit
generated from
these
businesses
helps to provide
dignity and hope
for a brighter
future for the
entrepreneur's
family.
How Grameen Bank works

Bank goes
to the
village

System
of Peer
collateral

How
Grameen Bank
works

Spin off

5 women
=
collateral

By Mohammed Yunus
Scientific American
November 1999
Spinoff

Work against
dowry
Objectives of Grameen Bank trainings

Stimulate interest
on the subject of
Microfinancing

Arouse
curiosity

Discover individual role
in the organization and
the global community

Learn and share
with others

Encourage
responsibility of selfmotivated learning

4
Method of action
Grameen America

Grameen America has assembled
a top management team,
including Chairman of the Board
Professor Muhammad Yunus,
to lead the organization’s efforts
to help break the cycle of poverty
through microfinance in
disadvantaged U.S. communities.
Grameen America began its
operations in New York City in
January 2008 and is working
to reach sustainability and to
expand its services to all individuals
with a dream to run a business.

hj

www.grameenamerica.com
Critics of Microcredit

Repayments are generally
due on loans from the first
week after they are taken
out, which does not give the
borrower enough time to
establish any form of incomeearning enterprise.

Microfinance is not without
its critics. Some argue that
people can quickly sink
into a cycle of debt, with
many lenders charging
exorbitant rates of interest.
The control women have
over their microloans
decreases over time

Because field officers are
judged on repayment
rates, they sometimes use
coercive and even violent
tactics to collect instalments
on the microcredit loans.

By James Melik Reporter,
Business Daily, BBC World Service
Difficulties of exporting the model

In India, microlenders cannot
accept deposits due to local
banking regulations. These
cash-strapped microlenders
have to turn to local banks or
rely on government grants.
This source of capital is
usually unstable, insufficient or
too expensive

Despite the bank’s success in
Bangladesh, little success has
been achieved in exporting the
Grameen Bank Model to other
poverty-stricken areas

By James Melik Reporter,
Business Daily, BBC World Service
Thank
You!

Arber Hoxhallari

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Grameen Bank - Arber Hoxhallari

  • 1. A small experiment begun in Bangladesh has turned into a major new concept in eradicating poverty…
  • 2. How microcredit works Microcredit is one of the most successful and sustainable solutions in the fight to eliminate world poverty. It has a proven structure and an impressive track record. The profit generated from these businesses helps to provide dignity and hope for a brighter future for the entrepreneur's family.
  • 3. How Grameen Bank works Bank goes to the village System of Peer collateral How Grameen Bank works Spin off 5 women = collateral By Mohammed Yunus Scientific American November 1999
  • 5. Objectives of Grameen Bank trainings Stimulate interest on the subject of Microfinancing Arouse curiosity Discover individual role in the organization and the global community Learn and share with others Encourage responsibility of selfmotivated learning 4
  • 7. Grameen America Grameen America has assembled a top management team, including Chairman of the Board Professor Muhammad Yunus, to lead the organization’s efforts to help break the cycle of poverty through microfinance in disadvantaged U.S. communities. Grameen America began its operations in New York City in January 2008 and is working to reach sustainability and to expand its services to all individuals with a dream to run a business. hj www.grameenamerica.com
  • 8. Critics of Microcredit Repayments are generally due on loans from the first week after they are taken out, which does not give the borrower enough time to establish any form of incomeearning enterprise. Microfinance is not without its critics. Some argue that people can quickly sink into a cycle of debt, with many lenders charging exorbitant rates of interest. The control women have over their microloans decreases over time Because field officers are judged on repayment rates, they sometimes use coercive and even violent tactics to collect instalments on the microcredit loans. By James Melik Reporter, Business Daily, BBC World Service
  • 9. Difficulties of exporting the model In India, microlenders cannot accept deposits due to local banking regulations. These cash-strapped microlenders have to turn to local banks or rely on government grants. This source of capital is usually unstable, insufficient or too expensive Despite the bank’s success in Bangladesh, little success has been achieved in exporting the Grameen Bank Model to other poverty-stricken areas By James Melik Reporter, Business Daily, BBC World Service