The document provides details about Grameen Bank, a microfinance organization and community development bank founded in Bangladesh that makes small loans known as microcredit to impoverished people without requiring collateral. It discusses how Muhammad Yunus started providing small loans in 1976 which led to the founding of Grameen Bank in 1983. As of 2012, Grameen Bank had over 8 million borrowers, mostly women, across Bangladesh and had distributed over $12 billion in loans with a repayment rate of 96%. In 2006, Grameen Bank and Muhammad Yunus won the Nobel Peace Prize for their work in reducing poverty.

1. 1 | P a g e
“Putting Poverty to
Poverty Museums by
2050”
SubmittedTo- SubmittedBy-
“ManishaMa’am” Prem Kumar Pankaj
B.Com(H), SectionA
Roll No. - 31122810

2. 2 | P a g e
Preface
This projecttalks abouta very uncommon and popular banking system
prevalent in Bangladesh. The concept of this banking systemis based upon
“microcredit” or “micro-financing”. Grameen bank that initially started as a
projectof Bangladesh Bank later got transformed into a new bank itself.
Grameen Bank (GB) has reversed conventional banking practice by removing
the need for collateral and created a banking systembased on mutual trust,
accountability, participation and creativity. GB provides credit to the poorestof
the poor in ruralBangladesh, without any collateral. At GB, credit is a cost
effective weapon to fight poverty and it serves as a catalyst in the overall
development of socio-economic conditions of the poor who have been kept
outside the banking orbit on the ground that they are poor and hence not
bankable. Professor Muhammad Yunus, thefounder of "Grameen Bank" and
its Managing Director, reasoned that if financial resources can be made
available to the poor people on terms and conditions that are appropriateand
reasonable, "these millions of small people with their millions of small pursuits
can add up to create the biggest development wonder."
Grameen Bank's positive impact on its poor and formerly poor borrowers has
been documented in many independent studies carried out by external
agencies including the World Bank, the InternationalFood Research Policy
Institute(IFPRI) and theBangladesh Instituteof Development Studies (BIDS).
This projecton Grameen Bank is an effort to bring forth this creative banking
systemthat has helped shapemillions of lives of people in Bangladesh and
abroad. This reporthas been made after 3 weeks of proper research and in-
depth study about the functioning of Grameen Bank over an internship with
Grameen Bank, Dhaka, Bangladesh from7th
December, 2013 to 28th
December,
2013. I hopemy efforts to compile this reportwas worth reading.

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Introduction
The GrameenBank (Bengali: গ্রামীণ বাাংক) is a Nobel Peace Prize
winning microfinance organization and community development bank founded
in Bangladesh. It makes small loans (known as microcredit or "grameencredit")
to the impoverished without requiring collateral. The name Grameen is
derived fromthe word gram which means "rural" or "village" in the Bengali
language.
Micro-credit loans are based on the concept that the poor have skills that are
under-utilized and, with incentive, they can earn more money. A group-based
credit approach is applied to use peer-pressurewithin a group to ensurethe
borrowers follow through and conducttheir financial affairs with discipline,
ensuring repaymentand allowing the borrowers to develop good credit
standing. The bank also accepts deposits, provides other services, and runs
severaldevelopment-oriented businesses including fabric, telephone and
energy companies. The bank's credit policy to supportunder-served
populations has led to the overwhelming majority (96%) of its borrowers being
women.
Grameen Bank originated in 1976, in the work of Professor Muhammad Yunus,
professor atUniversity of Chittagong, who launched a research projectto
study how to design a credit delivery systemto providebanking services to the
ruralpoor. Based on his positive results, in October 1983 the Grameen Bank
was authorized by national legislation as an independent bank. In 2006, the
bank and its founder, Muhammad Yunus, were jointly awarded the Nobel
Peace Prize. In 1998 the Bank's "Low-costHousing Program" won a World
Habitat Award. In 2011, the Bangladesh Government forced Muhammad
Yunus to resign fromGrameen Bank, saying that at age 72, he was years
beyond the legal limit for the position.

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Acknowledgement
At the outset I would like to thank my mentor “Manisha Ma’am” for being very
patient and helpful right fromthe choice till the completion of the project. I am
eternally grateful to you for guiding me throughoutthe project.
I would like to thank my parents who allowed me to opt for the Grameen Bank
Internship and helping me financially, emotionally and physically. Without their
love and supportthis report would not have been possible.
I would also like to thank “Professor Muhammad Yunus” and the entire
InternationalTraining Department and Grameen family for helping us learn
fromthe scratch about the Nobel Peace prize winner organization. I am
thankfulto all the other interns especially Maneeha Chowdhary, Erin Tafur,
Vinay Gupta and Rohit Nijhawan for making the entire internship experience
more lively and friendly. I would extend my hearty thanks to all those
associated with Grameen Bank.
I would also like to thank my college friends Parulfor helping me to finish this
projectand shareher resources to compile this report.
Prem Kumar Pankaj
B.com (Hons.), Section A
Kirorimal College, DU

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Contents
1. Grameen Bank- Nobel Peace PrizeWinner --------------------------------- 6
2. History ------------------------------------------------------------------------------- 8
3. What is Microcredit--------------------------------------------------------------- 10
4. Grameen Credit -------------------------------------------------------------------- 11
5. Sixteen Decisions ------------------------------------------------------------------ 14
6. Ten Indicators for Poverty Alleviation ---------------------------------------- 15
7. Traditional Banks Vs. Grameen Bank ----------------------------------------- 16
8. Women Members ----------------------------------------------------------------- 17
9. OrganizationalStructure--------------------------------------------------------- 18
10. Departments at Head Office--------------------------------------------------- 19
11. Grameen 1 and Grameen 2 ----------------------------------------------------- 20
12. Loan Products ---------------------------------------------------------------------- 21
13. Savings Products ------------------------------------------------------------------- 23
14. Credit Delivery System ----------------------------------------------------------- 25
15. Breaking the vicious cycle of poverty ----------------------------------------- 28
16. Method of Action ------------------------------------------------------------------ 30
17. Grameen Sister Companies ----------------------------------------------------- 31
18. Annual Report ----------------------------------------------------------------------35
19. Conclusion --------------------------------------------------------------------------- 37
20. Bibliography ------------------------------------------------------------------------- 38

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Grameen Bank
(NOBEL PEACE PRIZE WINNER ORGANIZATION)
In August1976, Dr. Muhammad Yunus, then Head of the Department of
Economics at the University of Chittagong, started a projectcalled Grameen
Bank Project. In 1979, theprojectexpanded into Tangail in corporation with
Bangladesh Bank. In October 1983, itwas established as an independent bank.
Today, Grameen is operating all across the country and has been replicated in
more than 100 countries of the world.
Grameen Bank is owned by the borrowers of thebank. The main goal is to
make credit available to the ruralpoor, mostly women, in the struggleagainst
poverty. In doing so, borrowers aregiven loans for income generating
purposes, and housing. All loans are given without collateral and without legal
instruments. Grameen Bank loans are paid on a weekly basis.
In 2002, Grameen Bank introduced its Struggled Member Program, especially
designed to lend money to beggars to find a dignified livelihood. They are
offered interest free loans. By the end of August2012, cumulativemembers
under this programreached 82,215. A totalto Taka 2.44 million has so far been
disbursed.
Grameen Bank introduces Higher Education Loan for its borrower’s children
from2000. By August2012 thereare 51,385 students havereceived higher
education loan fromGrameen Bank.
In an effortto encouragetheir members to educate their children, Grameen
offers scholarships to children of its members. By August2012 1, 55,281
students (both boys and girls) have received scholarships equalto US $ 3.42
million.
In August2012 Grameen had 2567 branches, 282 area offices, 40 ZonalOffices,
and 40 Zonal audit offices. Through 1,43,256 centers, spread over 81,383
villages, over US $ 12,552 million have been distributed to nearly 8.3 million
borrowers, 96%of them are women. Savings balanceof the borrowers stands
at US $ 859.91 million.

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Housing loans total US $ 386.55 million havebeen distributed to 6, 92,865
members. The outstanding amountof loans stands at US $ 0.63 million with a
repayment rate of 96.68%.
In 2006 GrameenBank and its founder Professor MuhammadYunus win the
Nobel Peace Prize.

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History
Muhammad Yunus earned a doctorate in economics fromVanderbilt
University in the United States. He was inspired during the Bangladesh famine
of 1974 to make a small loan of US$27 to a group of 42 families as start-up
money so that they could make items for sale, without the burdens of high
interest under predatory lending. Yunus believed that making such loans
available to a larger population could stimulate businesses and reducethe
widespread ruralpoverty in Bangladesh.
Nobel Laureate Muhammad Yunus, the bank's founder Yunus developed the
principles of the Grameen Bank (literally, "Bank of the Villages" in Bengali)
fromhis research and experience. He began to expand microcredit as a
research projecttogether with the Rural Economics Projectat
Bangladesh's University of Chittagong to test his method for providing credit
and banking services to the rural poor. In 1976, thevillage of Jobra and other
villages near the University of Chittagong became the firstareas eligible for
servicefromGrameen Bank. Proving successful, theBank project, with support
fromthe central Bangladesh Bank, was extended in 1979 to the Tangail
District (to the north of the capital, Dhaka). The bank's success continued and
its services wereextended to other districts of Bangladesh.

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By a Bangladeshi governmentordinanceon October 2, 1983, theprojectwas
authorized and established as an independent bank.[10]
Bankers Ron
Grzywinskiand Mary Houghton of ShoreBank, a community development
bank in Chicago, helped Yunus with the official incorporation of the bank under
a grant fromthe Ford Foundation. The bank's repaymentrate suffered from
the economic disruption following the 1998 flood in Bangladesh, but it
recovered in the subsequentyears. By the beginning of 2005, the bank had
loaned over USD 4.7 billion and by the end of 2008, USD 7.6 billion to the poor.
The Bank continues to expand across the nation and provide small loans to the
ruralpoor. By 2006, Grameen Bank branches numbered over 2,100. Its success
has inspired similar projects in more than 40 countries around the world,
including a World Bank initiative to finance Grameen-typeschemes.
The bank has gained its funding from different sources, and the main
contributors haveshifted over time. In the initial years, donor agencies used to
providethe bulk of capital at low rates. By the mid-1990s,thebank started to
get mostof its funding fromthe central bank of Bangladesh. More recently,
Grameen has started bond sales as a sourceof finance. The bonds are
implicitly subsidized, as they are guaranteed by the Governmentof
Bangladesh, and still they aresold above the bank rate. In 2013, Bangladesh
parliament passed 'Grameen Bank Act' which replaces the Grameen Bank
Ordinance, 1983, authorizing thegovernmentto make rules for any aspect of
the running of the bank.

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What is Microcredit?
The word "microcredit" did not exist beforethe seventies. Now it has become
a buzz-word among thedevelopment practitioners. In the process, theword
has been imputed to mean everything to everybody. No one now gets
shocked if somebody uses the term "microcredit" to mean agricultural credit,
or ruralcredit, or cooperative credit, or consumer credit, credit from the
savings and loan associations, or fromcredit unions, or from money lenders.
When someoneclaims microcredit has a thousand year history, or a hundred
year history, nobody finds it as an exciting piece of historical information.
Broad classificationof microcredit :
A) Traditional informal microcredit (such as, moneylender's credit, pawn
shops, loans fromfriends and relatives, consumer credit in informal
market, etc.)
B) Microcredit based on traditional informalgroups (such as, tontin, su su,
ROSCA, etc.)
C) Activity-based microcredit through conventionalor specialised banks
(such as, agriculturalcredit, livestock credit, fisheries credit, handloom
credit, etc.)
D) Rural credit through specialised banks.
E) Cooperative microcredit(cooperative credit, credit union, savings and
loan associations, savings banks, etc.)
F) Consumer microcredit.
G) Bank-NGO partnership based microcredit.
H) Grameen type microcredit or Grameen credit.
I) Other types of NGO microcredit.
J) Other types of non-NGO non-collateralized microcredit.

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Grameen credit
Whenever we use the word "microcredit" we actually havein mind Grameen
type microcredit or Grameencredit. But if the person we are talking to
understands it as some other category of microcreditmy arguments will not
make any sense to him. Let me list below the distinguishing features of
Grameencredit. This is an exhaustive list of such features. Not every Grameen
type programmehas all these features present in the programme. Some
programmes arestrong in some of the features, while others are strong in
some other features. But on the whole they display a general convergenceto
some basic features on the basis of which they introduce themselves as
Grameen replication programmes or Grameen type programmes.
General features of Grameencreditare :
a) Itpromotes credit as a human right.
b) Its mission is to help the poor families to help themselves to overcome
poverty. Itis targeted to the poor, particularly poor women.
c) Most distinctive feature of Grameencreditis that it is not based on any
collateral or legally enforceable contracts. Itis based on "trust", noton
legal procedures and system.
d) Itis offered for creating self-employmentfor income-generating
activities and housing for the poor, as opposed to consumption.
e) Itwas initiated as a challenge to the conventionalbanking which
rejected the poor by classifying them to be "notcreditworthy". As a
result it rejected the basic methodology of the conventional banking
and created its own methodology.
f) Itprovides serviceat the door-step of the poor based on the principle
that the people should not go to the bank, bank should go to the
people.
g) In order to obtain loans a borrower mustjoin a group of borrowers.
h) Loans can be received in a continuous sequence. New loan becomes
available to a borrower if her previous loan is repaid.
i) All loans are to be paid back in instalments (weekly, or bi-weekly).
j) Simultaneously more than one loan can be received by a borrower.

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k) Itcomes with both obligatory and voluntary savings programmesfor
the borrowers.
l) Generally these loans are given through non-profitorganizations or
through institutions owned primarily by the borrowers. If itis done
through for-profitinstitutions not owned by the borrowers, effortsare
made to keep the interest rate at a level which is close to a level
commensuratewith sustainability of the programmerather than
bringing attractive return for the investors. Grameencredit's thumb-rule
is to keep the interest rate as close to the marketrate, prevailing in the
commercial banking sector, as possible, withoutsacrificing sustain-
ability. In fixing the interest rate market interest rate is taken as the
reference rate, rather than the moneylenders'rate. Reaching the poor
is its non-negotiable mission. Reaching sustainability is a directional
goal. Itmust reach sustainability as soon as possible, so that it can
expand its outreach withoutfund constraints.
m) Grameencredit gives high priority on building social capital. It is
promoted through formation of groups and centers, developing
leadership quality through annual election of group and center leaders,
electing board members when the institution is owned by the
borrowers. To develop a social agenda owned by the borrowers,
something similar to the "sixteen decisions", it undertakes a process of
intensive discussion among the borrowers, and encourages themto
take these decisions seriously and implement them. Itgives special
emphasis on the formation of human capital and concern for protecting
environment. Itmonitors children's education, provides scholarships
and student loans for higher education. For formation of human capital
it makes efforts to bring technology, like mobile phones, solar power,
and promote mechanical power to replace manual power.
Grameencredit is based on the premise that the poor have skills which remain
unutilised or under-utilised. Itis definitely not the lack of skills which make
poor people poor. Grameen believes that the poverty is not created by the
poor; it is created by the institutions and policies which surround them. In
order to eliminate poverty all we need to do is to make appropriatechanges
in the institutions and policies, and/or create new ones. Grameen believes
that charity is not an answer to poverty. Itonly helps poverty to continue. It
creates dependency and takes away individual's initiative to break through
the wall of poverty. Unleashing of energy and creativity in each human being
is the answer to poverty.

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Grameen broughtcredit to the poor, women, the illiterate, and the people
who pleaded that they did not know how to investmoney and earn an
income. Grameen created a methodology and an institution around the
financial needs of the poor, and created access to credit on reasonableterm
enabling the poor to build on their existing skill to earn a better income in
each cycle of loans.
If donors can framecategory wisemicro credit policies they may overcome
some of their discomforts. Generalpolicy for microcreditin its wider senseis
bound to be devoid of focus and sharpness.
Three C's of Credit
Character: means how a person has handled pastdebt obligations: From
credit history and personalbackground, honesty and reliability of the
borrower to pay credit debts is determined.
Capacity: means how much debt a borrower can comfortably handle. Income
streams are analysed and any legal obligations looked into, which could
interfere in repayment.
Capital: means currentavailable assets of the borrower, such as realestate,
savings or investment that could be used to repay debt if income should be
unavailable.

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Sixteen Decisions
 The four principles of Grameen Bank-Discipline, Unity, Courageand hard
work-weshallfollow and advancein all walks of our lives.
 We shall bring prosperity to our families.
 We shall not live in dilapidated houses. Weshall repair houses and work
towards constructing new houses as soon as possible.
 We shall grow vegetables all the year round. We shall eat plenty of them
and sell the surplus.
 During the planting seasons, weshallplant as many seedlings as
possible.
 We shall plan to keep our families small. We shall minimize our
expenditures. We shalllook after our health.
 We shall educate our children and ensurethat they can earn enough to
pay for their education.
 We shall always keep our children and environmentclean.
 We shall build and use pit latrines.
 We shall not take any dowry in our sons’ weddings; neither shall we give
any dowry in our daughter weddings. Weshall keep the center free from
the curseof dowry. Weshall not practice child marriage.
 We shall not inflict any injustice on anyone; neither shall weallow
anyoneto do so.
 For higher income we shall collectively undertakebigger investments.
 We shall always be ready to help each other. If anyoneis in difficulty, we
shall all help.
 If wecome to know about any breach of discipline in any center, we
shall all go there and help restorediscipline.
 We shall take part in all social activities collectively.

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Ten Indicators of Poverty
Alleviation for Members
1. The members and their family who are living with dignity in a tin roofed
houseor having a house with a worth of minimum Tk. 25000 only and
the family members havethe arrangementto sleep on cots or beds
instead of floor.
2. Use water from tube wells installed individually or jointly with others in
the absenceof tube well water ensures safewater by boiling or purifying
it with alum, bleaching powder or water purifying tablet.
3. All the children of the members, who are at the age of six and above
and are mentally and physically fit, go to school.
4. The members whoseminimum weekly loan instalment is Taka 200 or
more.
5. All the members use hygienic and sanitary latrine.
6. The family members havesufficient clothing for daily use. Havethe
winter clothes like Kantha, wrapper, sweater, quilt, blanket etc. to
protect them fromcold and havemosquito net to protect them from
mosquito menace.
7. Have arrangements for growing vegetables or plantation of trees etc. in
the homestead for earning additional income to improve the economic
condition of the family and the sametime enable them to pay their loan
instalments fromthese incomes.
8. The members should have savings depositin bank at least on average
Tk. 5000 round theyear.
9. Has the ability to feed the family members three squaremeals a day
throughoutthe year i.e. no food crisis exists in the family.
10.All the family members are conscious aboutthe health issues. Havethe
ability to take immediate actions for proper treatment including
defraying of medical expenses in the event of illness of any member in
the family.

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Traditional Vs. Grameen
Bank
Though Grameen Bank too follows certain principles of Traditional Banking
Systemyet it is different fromTraditional Banks in many ways which are
mentioned as under:-
Basis of
Difference Grameen Banking System Traditional Banking System
Target Group
The target group of Grameen
bank is the poor and
downtrodden people. Italso
includes the beggar members.
Itonly caters to the credit
worthy people or middle class
or rich people.
Approach
The bank approaches people
to become a part of it and join
as members.
People approach bank to open
their account with banks.
Ownership Grameen Bank is owned by its
borrowers. Members have
their stake in bank.
The bank is owned by
shareholders who mightnot
be its member.
Repayment The repayment rate is
97%which is much higher than
other banks.
The repayment rate is
comparatively very low.
Legal
Documents
No legal documents are signed
against any loan as they don’t
want to drag their members
to the court
Legal documents are a
compulsion. In caseof default
the bank will seek help from
court for final settlement.
Security
No collateral or security is
needed againstany loan.
Security or collateral is to be
mortgaged against the loan.
Business
Model
Itis based on the concept of
Micro-credit or social
business.
Itis based on the commercial
model.
Motive
The primary motive is social
welfare and development.
The primary motive is earning
profit.

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Women Members
In 1976 when the projectof Bangladesh Bank started no one had thought of
women being majority in this project. Earlier when this project started both
men and women had and equal opportunity to obtain loan fromthe bank.
Later on there was a paradigm shiftand women members today are 97% of the
total members while men accountjustfor the remaining 3%. The reasons that
led to such massiveshiftin context to Bangladesh were as follows:-
 Women are moreconscious about savings, repaymentetc. and are more
sincere.
 Itwas easier to attend Center meetings as men used to stay out of the
village mostly for work.
 Men were the earning members of the family while women served the
households. So to manage their household in tough times in a better
way needed morecapital which the women could only understand.
 Itled to women empowerment, generated employment opportunities
for them and helped them to manage family in a better way.
 Women in Bangladesh don’t have say in the family, so Grameen bank
helped in regaining their respect, dignity and made them a part of
decision making in the family.
 They were moreconscious and contributed towards family as well as
National Income.

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Organizational Structure
At Village Level:-
Zonal Office:-
 40 Zonal Offices under the supervision of ZonalManager.
 9-10 people work in a Zonal Office.
 There are 40 Zonal Offices.
Area Office:-
 Itis under the supervision of Area Manager.
 2nd
man is the ProgramOfficer.
 There are 268 Area Offices.
Branch Office:-
 Itis under the supervision of Branch Manager. There are6-7 employees.
 The 2nd
man is Accountant/Cashier (signatory). Thereis 1
messenger/peon.
 The Branch Manager handles the center meetings.
Head Office(1)
Zonal Office (40)
Area Office (268)
Branch Office (2567)
Center (1,42,990)
Groups (13,19,230)
Borrowers (84,78,014)

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Departments of Head Office
Board of Directors:-
As per as the ordinance 75% of the stake is with Grameen Bank and the restis
with the Government. The composition of the Board of Directors is as follows:-
 There are 13 Board of Directors outof which
 9 are elected by the borrowers
 3 are elected by the Governmentand
 1 is Managing Director of Grameen Bank(Ex-officio without voting
power)
Training
Administration
Establishment
Service
Accounts
International
Training and
Research

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Grameen 1 and Grameen 2
Grameen 1 is also known as the Classical
system(1976-2000).Under this system
there can only be 5 members in a group
and a new member can join only when any
one leaves the group. The number of
members can’t exceed five at any point of
time.
Under this system5 additional members
could be added when the group size turns
10. Then the new group could be divided
into 2 groups having 7-8 members each.
There is 1 Group Chairman and secretary.
The entire groups chairman elects the
Center leader.
The Grameen System:-
 60-70 Center forma Branch Office
 8-10 Branches forman Area Office
 6-8 Area Offices formZonalOffice
 40 Zonal Offices formHead Office
Grameen 1
Members
Chairman
Secretary
Grameen 2
General
Members
Additional
Members
Secretary
Chairman

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Loan Products
Basic Loan:-
As the name suggests basic loan is meant for the basic needs and necessities of
life such as food, clothing, shelter, health and education. The repayment
period of Basic loan is 52 weeks or 45 weeks. Instalments arepayable on
declining method but at a flat rate of 10%. Therate of Interestchargeable on
such loan is 20%.
Instalment= {[(Firstbal. +Last bal.)/2] (No. of days) (InterestRate)}*100
Days
365 Days
Flexible Loan:-
Itis also known as ContractLoan. The rate of Interestapplicable is 20%. If any
member is unable to pay his/her instalment on time due to someunforeseen
circumstances (death, illness) for the past 10 weeks, then he/she can contact
the bank to pay a minimum instalment of Taka 50 and when the member
regains his solvency he can pay it back within 3 years the overduebalance to
enter back Basic loan if he/she fails to do so it turns into a bad debt. This came
to existence when Bangladesh was severely hit by Flood.
House Loan:-
The rate of interest is 8% which is chargeable on declining method. Itis
available to both employees and members. Itis basically meant for the poor.
Grameen Bank also provides apparatus required for building house. The
required raw material is chosen by the husband/member along with the
Branch Manager. Now Grameen Bank stopped it, instead basic loan is used in
place of it.
Beggar Loan:-
Beggar Loan started through an informal program. Thereis no liability for
beggar members to attend the center meetings. Under this scheme bank
provides loan to such members to purchasedaily consumables and sell it door-
to-door. Initially under this scheme500-1000 Taka is given initially. No interest
is to be paid. Along with this umbrella and mosquito nets are provided.

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New Entrepreneur Loan:-
The rate of interest under this loan is 20%. Itis given to the kids of the
members to initiate a business when the child gains higher education but fails
to get a job.
Provident FundLoan:-
The rate of interest under this scheme is 9.5% per annumand is given to the
employees of Grameen Bank. This loan is given against the ProvidentFund
balance.
Motor Cycle and Householdloan:-
This loan is kind of working capital that is required by businesses. As the name
suggests Household loan is given to carry out the day-to-day activities of the
household. Motor cycle loan is given to purchasemotor cycle. The interest rate
for both the loans is 5%.
House Building Loan:-
This loan is different fromhousing loan it is meant for dwellers in sub-urban
areas and cities; not villages. The rate of interest is 8% per annumon a
declining basis.
Education Loan:-
Itis available to the children of borrowers. Itcaters to B.Tech (Engineering),
Medical students, University studentetc. It is meant for higher education
purposeonly. In order to avail this loan facility the child should haveblood
relation with parents (excluding adopted, step children or children of
relatives). Taka 1, 00,000 loan is given for 4 years course. The entire loan
schedule is divided into 4 years and each year into 4 quarters (3 months). So
each month close to Taka 6,000 is disbursed and signatureof both member
and student is taken so that loan money is not misused and 1 year graceperiod
is given for repaymentwhere the studentsearches for job. Until he finds a job
no interest is chargeable but after the end of the graceperiod interest starts
getting due.
Micro-enterpriseLoan:-Itis meant for good and credit worthy customers and
those who have potential to expand their business. Itcan be given only after
the member has taken Basic and 2nd
loan. The repayment period is negotiable.
Interestapplicable is 20%.

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Savings Products
Personal Savings:-
Itis open for both members and non-members of bank. For this they must
open a savings accountwith bank. They are supposed to deposit an equal
amount every week and can increase the deposit money but the increased
amount mustbe continued every week fromthereon.
GrameenPensionScheme (GPS):-
Itis meant for borrowers/membersand Grameen employees. Itis a monthly
deposit scheme. ItInvolves 2 schemes-
 5 Years 10% Interest :- Withdrawlcan be at any time. If amount is
withdrawn beforematurity then-
i) 0-1 Year- No Interest
ii) 1-3 Years- 8% Interest
iii) 3-5 Years- 10% Interest
 10 Years 12% Interest :- Withdrawlcan’tbe anytime. If the money is
withdrawn beforematurity for 1st
5 years sameschedule is followed but
betwwen 5-10 Years 12% Interestwill be given.
If an accountis opened supposewith 500 Tk. then monthly deposit should be
500 Tk. only. 10 years 12% interestis a better schemethan the former.
FixedDeposit:-
Minimum amount for FD accountis 100 Taka. Under this schemethe Interestis
categorized as follows-
 1 Year- 8.75% Interest
 2 Years- 9.25% Interest
 3 Years- 9.50% Interest
In caseif they wantto withdraw money, interest will be paid as follows-
 0-1 Year- 0% Interest
 1-2 Years- 8.75% Interest
 2-3 Years- 9.25% Interest

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Double in 7 Years (FixedDeposit):-
Itis a contract. Itis a special type of Fixed Depositand is a very popular
scheme. In case if the amountis withdrawn beforematurity the Interestis paid
according to the chart mentioned behind the receipt. Minimum deposit under
this scheme is 1000 Taka and there is no limit for maximum deposit. Under this
scheme is suppose100 Taka is deposited today, after 7 years the depositor will
get 200 Taka. Effective rate of interest is 10.4% Interest.
Monthly Profit Scheme:-
Itis open to all and is a kind of fixed deposit. Profit is given back every month.
Rate of profitor Interestis 8.5% per month. Suppose1,00,000 Taka is
deposited then monthly interest will be 850 Taka which will be transferred to
savings accountand further 8.5% Interestwillbe given on 850 Taka under
PersonalSavings Scheme. A nominee could be chosen and the amount of
interest could be transferred directly to his/her savings account.
Loan Insurance Savings:-
Itis only for borrowers and employees. Itis a special type of savings. In this
scheme the deposit amount should equal 3% of outstanding loan. In this
scheme only principal amount is paid back without any interest after the loan
amount is paid. Total outstanding loan is kept into consideration. If the
outstanding amount is less then further no deposits are to be made but in case
the amountis more; then deposit is to be made on the increased amount.
Additional 3% can be deposited for their husbands and in case of death 100%
of the loan will be waived off. Earlier it was not that successfulbutnow it has
gained popularity. Nearly 75% of the husbands arecovered under this scheme.
12% of the deposited amount goes to a fund for meeting such contingencies.
3% deposited can be adjusted against the loan amount fromthis savings
account. The money is given back in casemembers leave Grameen Bank. This
is a kind of savings made againstthe loan, a sortof collateral.

25. 25 | P a g e
Credit Delivery System
Grameen Bank Credit Delivery means taking credit to the very poor in their villages by
means of the essential elements of the Grameen credit delivery system.
Grameen Bank credit delivery systemhas the following features:
1 There is an exclusive focus onthe poorest of the poor.
Exclusivity is ensured by:
i) establishing clearly the eligibility criteria for selection of targeted clientele and
adopting practical measures to screen out those who do not meet them
ii) in delivering credit, priority has been increasingly assigned to women
iii) the delivery systemis geared to meet the diverse socio-economic
development needs of the poor
2 Borrowers are organizedintosmall homogeneous groups.
Such characteristics facilitate group solidarity as well as participatory interaction.
Organizing the primary groups of fivemembers and federating them into centers
has been the foundation of Grameen Bank's system. The emphasis fromthe very
outset is to organizationally strengthen the Grameen clientele, so that they can
acquire the capacity for planning and implementing micro level development
decisions. The Centers are functionally linked to the Grameen Bank, whosefield
workers haveto attend Center meetings every week.
3 Special loan conditionality whichare particularly suitablefor the poor.
These include:
i) Very small loans given without any collateral
ii) Loans repayable in weekly instalments spread over a year
iii) Eligibility for a subsequentloan depends upon repaymentof firstloan
iv) Individual, self-chosen, quick incomegenerating activities which employ the
skills that borrowers already posses
v) Close supervision of credit by the group as well as the bank staff
vi) Stress on credit discipline and collective borrower responsibility or peer
pressure
vii) Special safeguards through compulsory and voluntary savingsto minimize the
risks that the poor confront
viii) Transparency in all bank transactions mostof which take place at center
meetings.

26. 26 | P a g e
4 Simultaneous undertaking of a social development agendaaddressing basic
needs of the clientele.
This is reflected in the "sixteendecisions" adopted by Grameen borrowers. This
helps to:
i) Raise the social and political consciousness of the newly organized groups
ii) Focus increasingly on women fromthe pooresthouseholds, whoseurgefor
survivalhas a far greater bearing on the development of the family
iii) Encouragetheir monitoring of social and physicalinfrastructureprojects -
housing, sanitation, drinking water, education, family planning, etc.
5 Designand development of organizationandmanagement systems capable of
delivering programresources totargetedclientele.
The systemhas evolved gradually through a structured learning process that
involves trials, errors and continuous adjustments. A major requirement to
operationalize the systemis the special training needed for development of a
highly motivated staff, so that the decision making and operational authority is
gradually decentralized and administrative functions aredelegated at the zonal
levels downwards.
6 Expansionof loan portfoliotomeet diverse development needsof the poor.
As the general credit programgathers momentum and the borrowers become
familiar with credit discipline, other loan programare introduced to meet growing
social and economic development needs of the clientele. Besides housing, such
programinclude:
i) credit for building sanitary latrines
ii) credit for installation of tube wells that supply drinking water and irrigation for
kitchen gardens
iii) credit for seasonalcultivation to buy agricultural inputs
iv) loan for leasing equipment / machinery, i.e., cell phones purchased by
Grameen Bank members
v) Finance projects undertaken by the entire family of a seasoned borrower.
The underlying premiseof Grameen is that, in order to emerge frompoverty and
remove themselves fromthe clutches of usurers and middlemen, landless peasants
need access to credit, withoutwhich they cannot be expected to launch their own
enterprises, however smallthese may be. In defiance of the traditional ruralbanking
postulate whereby "no collateral (in this case, land) means no credit", the Grameen
Bank experiment set out to prove - successfully - that lending to the poor is not an
impossibleproposition; on the contrary, it gives landless peasants the opportunity to
purchasetheir own tools, equipment, or other necessary means of production and
embark on income-generating ventures which will allow them escape fromthe

27. 27 | P a g e
vicious cycle of "low income, low savings, low investment, low income". In other
words, thebanker's confidence rests upon the will and capacity of the borrowers to
succeed in their undertakings.
The mode of operation of Grameen Bank is as follows. A bank branch is set up with a
branch manager and a number of center managers and covers an area of about15 to
22 villages. The manager and the workers startby visiting villages to familiarize
themselves with the local milieu in which they will be operating and identify the
prospectiveclientele, as well as explain the purpose, the functions, and the mode of
operation of the bank to the local population. Groups of five prospectiveborrowers
are formed; in the firststage, only two of them are eligible for, and receive, a loan.
The group is observed for a month to see if the members are conforming to the rules
of the bank. Only if the first two borrowers begin to repay the principal plus interest
over a period of six weeks, do the other members of the group become eligible
themselves for a loan. Because of these restrictions, thereis substantialgroup
pressureto keep individual records clear. In this sense, the collective responsibility of
the group serves as the collateral on the loan.
Loans are small, but sufficientto finance the micro-enterprises undertaken by
borrowers: rice-husking, machinerepairing, purchaseof rickshaws, buying of milk
cows, goats, cloth, pottery etc. The interest rate on all loans is 16 percent. The
repayment rate on loans is currently - 95 percent - due to group pressureand self-
interest, as well as the motivation of borrowers.
Although mobilization of savings is also being pursued alongside the lending activities
of the Grameen Bank, most of the latter's loanable funds are increasingly obtained on
commercial terms fromthe central bank, other financial institutions, the money
market, and frombilateral and multilateral aid organizations.

28. 28 | P a g e
Breaking the vicious cycle of
poverty through microcredit
The Grameen Bank is based on the voluntary formation of small groups of five
people to providemutual, morally binding group guarantees in lieu of the
collateral required by conventional banks. Atfirstonly two members of a group
are allowed to apply for a loan. Depending on their performancein repayment
the next two borrowers can then apply and, subsequently, the fifth member as
well.
The assumption is that if individual borrowers aregiven access to credit, they will
be able to identify and engage in viable income-generating activities - simple
processing such as paddy husking, lime-making, manufacturing such as pottery,
weaving, and garmentsewing, storageand marketing and transportservices.
Women wereinitially given equal access to the schemes, and proved not only
reliable borrowers butastuteentrepreneurs. As a result, they haveraised their
status, lessened their dependency on their husbands and improved their homes
and the nutritional standards of their children. Today over 90 percent of
borrowers arewomen.
Intensivediscipline, supervision, and servicing characterizethe operations of the
Grameen Bank, which are carried out by "Bicyclebankers" in branch units with
considerabledelegated authority. The rigorous selection of borrowers and their
projects by these bank workers, thepowerfulpeer pressureexerted on these
individuals by the groups, and the repaymentscheme based on 50 weekly
instalments, contribute to operational viability to the ruralbanking system
designed for the poor. Savings have also been encouraged. Under the scheme,
there is provision for 5 percent of loans to be credited to a group find and Tk. 5 is
credited every week to the fund.
The success of this approach shows thata number of objections to lending to the
poor can be overcome if careful supervision and management areprovided. For
example, it had earlier been thought that the poor would not be able to find
remunerative occupations. In fact, Grameen borrowers havesuccessfully done
so. Itwas thought that the poor would not be able to repay; in fact, repayment
rates reached 97 percent. Itwas thought that poor ruralwomen in particular
were not bankable; in fact, they accounted for 94 percent of borrowers in early
1992. Itwas also thoughtthat the poor cannotsave; in fact, group savings have

29. 29 | P a g e
proven as successfulas group lending. Itwas thought that ruralpower structures
would make surethat such a bank failed; but the Grameen Bank has been able to
expand rapidly. Indeed, fromfewer than 15,000 borrowers in 1980, the
membership had grown to nearly 100,000 by mid-1984. By theend of 1998, the
number of branches in operation was 1128, with 2.34 million members (2.24
million of them women) in 38,957 villages. Thereare 66,581 centers of groups, of
which 33,126 arewomen. Group savings havereached 7,853 million taka
(approximately USD 162 million), out of which 7300 million Taka (approximately
US$ 152 million) are saved by women.
Itis estimated that the averagehousehold income of Grameen Bank members is
about 50 percent higher than the target group in the controlvillage, and 25
percent higher than the target group non-members in Grameen Bank villages.
The landless havebenefited most, followed by marginallandowners. This has
resulted in a sharp reduction in the number of Grameen Bank members living
below the poverty line, 20 percent compared to 56 percent for comparable non-
Grameen Bank members. There has also been a shift fromagriculturalwage
labour (considered to be socially inferior) to self-employmentin petty trading.
Such a shift in occupational patterns has an indirect positive effect on the
employment and wages of other agriculturalwaged labourers. What started as
an innovative local initiative, "a small bubble of hope", has thus grown to the
point where it has made an impact on poverty alleviation at the national level ".

30. 30 | P a g e
Method of Action
The Grameen Bank's Method of action can be illustrated by the following
principles:
 Start with the problem rather than the solution: a credit systemmust
be based on a survey of the social background rather than on a pre-
established banking technique.
 Adopt a progressiveattitude: development is a long-term process
which depends on the aspirations and commitment of the economic
operators.
 Make surethat the credit systemserves the poor, and not vice-versa:
credit officers visit the villages, enabling them to get to know the
borrowers.
 Establish priorities for action vis-a-vis to the target population: serve
the mostpoverty-stricken peopleneeding investment resources, who
have no access to credit.
 At the beginning, restrict credit to income-generating production
operations, freely selected by the borrower. Makeit possiblefor the
borrower to be able to repay the loan.
 Lean on solidarity groups: smallinformal groups consisting of co-opted
members coming fromthe same background and trusting each other.
 Associatesavings with credit without it being necessarily a
prerequisite.
 Combine close monitoring of borrowers with procedures which are
simple and standardised as possible.
 Do everything possibleto ensurethe system's financialbalance.
 Investin human resources: training leaders will providethem with real
development ethics based on rigour, creativity, understanding and
respect for the rural environment.

31. 31 | P a g e
Grameen Sister Companies
Grameen Communications
Grameen Communications is one of the IT-based solution providers in
Bangladesh, concentrated on Micro FinanceSoftwaredevelopment,
Implementation, HardwareSupport, Training and ProjectSupportrelating to
Rural Development. GC has the broad mission to promote the establishment
of an accessibleand sustainableinformation and communication
infrastructureall over Bangladesh for research collaboration, information
exchange, information sharing as well as communications.
As a resultof the success of Grameen Bank in reaching and serving the poor
with credit, many people and organizations began to think in Grameen's way,
and wanted to learn more about Grameen and follow Grameen's principles in
their own sphereof work. Itis primarily to meet this demand that the
Grameen Trust(GT) came into being in 1989
Grameen Fund
Grameen Fund was incorporated on January 17, 1994 as a "not-for-profit"
company and started operations on February 1, 1994. Its emphasis is on
providing finance to ventures that are risky, technology - oriented and
otherwisedeprived of financing fromexisting formallending institutions.
Grameen Telecom
Grameen Telecom is a company dedicated to bringing the information
revolution to the ruralpeople of Bangladesh. Grameen Telecom is planning,
over the next 4 years, to provideGSM 900/1100cellular mobile phoneservice
to 100 million ruralinhabitants in 68,000 villages of Bangladesh by (1)
financing 60,000 members of Grameen Bank to providevillage pay phone
serviceand (2) providing direct phones to potential subscribers.

32. 32 | P a g e
Grameen Cybernet Ltd.
Grameen CybernetLtd. has been Bangladesh's leader in Internet service
provision sinceit commenced operation in July 1996. Its Chief Executive has
had an extensive career in education and information technology in the US
and is assisted by a team of bright, young executives.
Grameen Shakti/Energy
Grameen Shakti(GS) is a not-for-profitruralpower company whosepurpose
is to supply renewable energy to villages in Bangladesh. GS expects not only
to supply renewable energy services, but also to create employment and
income-generation opportunities in ruralBangladesh.
Grameen Phone
In the fast-paced world of telecommunications, vibrantand dynamic
CorporateGovernancepractices are an essential ingredient to success.
Grameen phone believes in the continued improvementof corporate
governance. This in turn has led the Company to commit considerable
resources and implement internationally accepted CorporateStandards in its
day-to-day operations.
Grameen Shikkha/Education
Grameen Shikkha is a company in the family of Grameen companies.
Established in 1997 its main objectives are to promotemass education in rural
areas, providefinancial supportin the formof loans and grants for the
purposeof education, use ITfor alleviation of illiteracy and development of
education, promote new technologies and innovate ideas and methods for
development of education etc. Grameen Shikkha has been conducting Life
Oriented Education Program, Pre-school/Child DevelopmentProgram, Early
Childhood Development Programand Arsenic Mitigation Programin various
districts of Bangladesh.

33. 33 | P a g e
Grameen Knitwear Limited
Grameen Knitwear Limited: The company is a 100% exportoriented
composite knitwear factory, located in the Export Processing Zonein Savar in
the vicinity of Dhaka, the capital of Bangladesh. Ithas knitting, dyeing,
finishing and garments production facilities. Mostof the machinery and
equipment havebeen sourced fromEurope. The factory is capable to produce
very high quality of different knit fabrics and garments of children, men and
women. The fabrics and garments are fabric and yarn dyed 100% cotton, TC,
CVC, and Polyester with lycra attachment etc. of various counts. The countries
wherethe goods are currently exported are mostly Europe. The goods are
exported against confirmed irrevocableletter of credit.
Grameen Solutions
Grameen Solutions, a flagship technology company within Grameen family of
organizations. Founded by Dr. Muhammad Yunus, recipient of 2006 Nobel
Peace Prize, Grameen Solutions offers business services, management
consulting, softwaredevelopment, business process and serviceoutsourcing.
Grameen Solutions offers unparalleled total value through creative solutions
that meet the diverseand dynamic needs of our global and local client base.
With Grameen Solutions, consider it solved!
Grameen Solutions has been predominantin serving the telecommunications
industry through the development of a diverserange of products. In keeping
with the currentglobal trend of diversified business, Grameen Solutions has
expanded its portfolio of productand services to meet the needs of
technology industry, educationalinstitutions, government sector, banking and
finance, health-care and manufacturing firms. Thus, expanding possibilities,
increasing technology inclusion, forging successfulpartnerships and
encouraging great customer feedback.

34. 34 | P a g e
Grameen Byabosa Bikash
Grameen Byabosa Bikash (GBB) is one of the sister organizations in the
Grameen family of enterprises. The English meaning of this name is “Grameen
Business Promotion and Services”. GBB is a social business and not-for-profit
organization registered under the Companies Act – 1994 of Peoples Republic
of Bangladesh Government. Itstarted operation in 2001 with its registered
office located at the Grameen Bank Complex at Mirpur area of Dhaka city.
GBB has a board consisting of 8 members. The Board is headed by Nobel
laureate Professor Muhammad Yunus. Theother Board members are also
renowned in their respectivefield. The Board sits at least every four months
to assess the progress of the organization.

35. 35 | P a g e
(a) On the lastday ofeach month, 50%provision is madeagainsttheoutstanding amounts offlexibleloans withageofless than2
years, and 100% provisionis madeagainst the o/s amounts offlexibleloans with age of2 years andmore.The portions of
flexibleloans which completethethird year are written offexactly on the datefollowing theircompletion.
(b) This figure is notexactly equal tothedifferencebetween items 1 and 2 because ofdifference betweenconversionrates.
(c) Amount repaidas a percentageofamount due.
(d) If a borrower misses 10consecutiveinstalments, the entireoutstanding loan is treatedas anoverdue loan
(e) On the lastday ofeach month, 100% provisionis madeagainst alloverdue loans. Entireamountofalloverdue loans is written
off one yearafter they becomeoverdue.
(f) In case ofone-yearloan,iftheborrower fails to repay halfthe loan amount, with interest, within26 weeks, entireunpaid
amount becomes overdue. Incaseofloans withlongerduration, ifthe borrower fails to repay the totalprincipalamount and
interest scheduledto berepaidwithineachsegmentof26 weeks, entireunpaid amountfalls overdue.
NOTE: Current exchangerate : 1 US$=Taka 77.75.
Grameen Bank Monthly Update in US$: October, 2013
HEAD OFFICE, MIRPUR-2 DHAKA-1216
Sl. No. Particulars In million US $
1.0 Cumulative Amount DisbursedSince Inception 14,354.29
2.0 Cumulative Amount RepaidSince Inception 12,994.67
3.0 AmountDisbursedthismonth 118.18
4.0 AmountRepaidthismonth 125.19
5.0 Outstanding Loans
5.1 Basic Loan 933.58
5.2 Flexible Loan 91.10
5.3 HousingLoan 0.45
5.4 EducationLoan 36.75
5.5 OtherLoans 4.12
5.6 Total : 1,066.01
6.0 Rate of Recovery 97.26
7.0 Total Outstanding Borrowers Missing5 to 9 Instalments
7.1 Basic Loan 6.77
7.2 Flexible Loan 16.15
7.3 Total : 22.93
8.0 Overdue Loan
8.1 Basic Loan 12.835
8.2 Flexible Loan 8.832
8.3 HousingLoan 0.008
8.4 OtherLoan 0.000
8.5 Total : 21.675
9.0 Microenterprise Loan(Cumulative)
9.1 Numberof Microenterprise Loans 5,219,678
9.2 AmountDisbursed 2,332.47
9.3 AmountRepaid 2,050.34
10.0 Balance Of Deposits
10.1 Members’Deposits 1,069.02
10.2 Non-members’Deposits 664.15
10.3 Total : 1,733.17
11.0 DepositsTo Outstanding
11.1 DepositsasPercentage of OutstandingLoans 163
11.2 DepositsandOwnResources asPercentage Of O/SLoan 179
11.3 No. Of Brancheswithmore in DepositsthanO/SLoan 1,997

36. 36 | P a g e
Sl. No. Particulars In Million US$
12.0 Beggar Members
12.1 Numberof beggar Members 80,355
12.2 AmountDisbursed(Cumulative) 2.51
12.3 AmountRepaid(Cumulative) 2.05
12.4 Amountof savings(Balance) 0.11
13.0 Cumulative Numberof village phones 1,271,583
14.0 Cumulative NumberOf Housesbuilt withHousing Loan 694,910
15.0 Life Insurance Fund (Cumulative)
15.1 Numberof Death amongall borrowers 156,273
15.2 Amountpaidout of life Insurance Fund 5.09
16.0 Loan Insurance
16.1 Balance in Loan Insurance Savings 103.85
16.2 Numberof Deathsamong personsInsured(Cumulative) 290,439
16.3 Amountof outstandingprincipal andInterestof the
Deceasedborrowerspaidoutof Insurance Fund(Cumulative)
40.48
17.0 Higher Education Loan (Cumulative)
17.1 Numberof female students 12,242
17.2 Numberof Male students 40,280
17.3 Total : 52,522
17.4 AmountDisbursed(Female) 12.18
17.5 AmountDisbursed(Male) 32.93
17.6 Total : 45.11
18.0 Scholarship(Cumulative)
18.1 ScholarshipRecipients(Female) 106,832
18.2 ScholarshipRecipient(Male) 75,188
18.3 Total : 182,020
18.4 ScholarshipAmount(Female) 2.39
18.5 ScholarshipAmount(Male) 1.71
18.6 Total : 4.09
19.0 Numberof Members
19.1 Female 8,156,191
19.2 Male 321,832
19.3 Total : 8,478,014
20.0 Numberof Groups 1,319,213
21.0 Numberof Centres 142,990
22.0 Numberof Villages 81,388
23.0 Numberof Branches 2,567
24.0 Numberof Branches with ComputerisedAccountingand MIS 2,567
(g) Number ofmembers includes bothbeggar members and Higher education Loanrecipients mentionedin itemnumber 12.1and
17.3 respectively.

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Criticism
Some analysts havesuggested that microcredit can bring communities into
debt from which they cannot escape. Researchers have noted instances when
microloans fromthe Grameen Bank were linked to exploitation and pressures
on poor families to sell their belongings, leading in extreme cases to
humiliation and ultimately suicides.
The Mises Institute's Jeffrey Tucker suggests thatmicrocredit banks depend on
subsidies in order to operate, thus acting as another example of welfare. Yunus
believes that he is working againstthe subsidized economy, giving borrowers
the opportunity to create businesses. Someof Tucker's criticism is based on his
interpretation of Grameen's "16 decisions," seen as indoctrination, without
considering whatthey mean in the context of poor, illiterate peasants.
Maulana Ibrahim, an imam in Bangladesh, spokeout againstthe Grameen
Bank in 1993 for fostering "un-Islamic ways." Healleged that the lenders'
pledge required women to say they would not obey their husbands and would
not live in poverty anymore.
The Norwegian documentary, Caughtin Micro debt, said that Grameen evaded
taxes. The Spanish documentary, Microcredit, also suggested this. The
accusation is based on the unauthorized transfer of approximately US$100
million, donated by The Norwegian Agency for Development Cooperation
(NORAD), fromoneGrameen entity to another in 1996, beforethe expiry of
the Grameen Bank's tax exemption.
Muhammad Yunus denies that this is tax evasion:
"There is no question of tax evasion here. The Governmenthas provided
organizations with opportunities; wehave made use of these opportunities
with aim of benefitting our shareholders who arethe ruralpoor women of
Bangladesh."
David Roodmanand Jonathan Morduch question the statistical validity of
studies of microcredit's effects on poverty, noting the complexity of the
situations involved. Yoolim Lee and Ruth David discuss how microfinanceand
the Grameen model in South India havein recent years been distorted by
venture capitalism and profit-makers. In somecases, poor ruralfamilies have
suffered debt spirals, harassmentby microfinancedebt collectors, and in some
cases suicide.

38. 38 | P a g e
Bibliography
 http://www.grameen-info.org/
 http://en.wikipedia.org/wiki/Grameen_Bank
 Publications from InternationalTraining Department
 Annual Reports
 “Banker To The Poor- Creating a world without Poverty”
 “Building Social Business”- Muhammad Yunus with KarlWeber’