GRAMEEN BANK

INTRODUCTION

The Grameen Bank is a community development bank started in

Bangladesh.

They give small loans (known as microcredit or "grameencredit"

to poor people without asking for money before the loan is given.

The word "Grameen", is made of the word "gram" or "village",

and means "of the village".

It is a banking system based on

Mutual trust

Accountability

Participation

Creativity

MUHAMMAD YUNUS

DETAILS
Grameen

Bank (GB) Grameen Bank Building in Dhaka

Type Body Corporate (Bank Ordinance)
Industry
Finance
When it was created 1983
No of location :2565 (July 2010)
Headquarters Dhaka, Bangladesh
Area served Bangladesh
founder : Muhammad Yunus,
Key people : Mohammad shahjahan (CEO)
Things made Financial Services
Microfinance
Money earned Increase 6,335,566,324 Taka (2006)[1]
Operating income Increase 5,959,675,013 Taka (2006)[1]
Net income Increase 1,398,155,030 Taka (2006)[1]
Total assets 59,383,621,728 Taka (2006)[2]
Employees 24,703 (Oct 2007)[3]
Website http://www.grameen-info.org/

HISTORY

Grameen means rural or village in Bangladesh

Origin 1976

Founder : prof Muhammad Yunus, head of the rural economics program at the
university of Chittagong also a wel renoned nobel laureate.

He was inspired during the terrible Bangladesh famine of 1974

The bank was immensely successful.

By Bangladeshi government ordinance on oct-2-1983,the project was

transformed into an independent bank

The bank today continuous to expand across the nation and is owned by the rural
poor whom it serves.

By 2006 grameen bank branches numbered over 2100

THE 16 DECISIONS OF GRAMEEN BANK

1.

We shall follow and advance the four principles of Grameen Bank: Discipline,
Unity, Courage and Hard work in all walks of our lives.

2. Prosperity we shall bring to our families.

3.We shall not live in dilapidated houses. We shall repair our houses and work towards
constructing new houses at the earliest.
4.We shall grow vegetables all the year round. We shall eat plenty of them and sell the
surplus.
5.During the plantation seasons, we shall plant as many seedlings as possible.
6.We shall plan to keep our families small. We shall minimize our expenditures. We shall
look after our health.
7. We shall educate our children and ensure that they can earn to pay for their
education.

8. We shall always keep our children and the environment clean.

9.We shall build and use pit-latrines.
10.We shall drink water from tubewells. If it is not available, we shall boil water or
use alum.
11.We shall not take any dowry at our sons' weddings, neither shall we give any dowry
at our daughter's wedding. We shall keep our centre free from the curse of dowry. We
shall not practice child marriage.
12. We shall not inflict any injustice on anyone, neither shall we allow anyone to do
so.
13.We shall collectively undertake bigger investments for higher incomes.
14. We shall always be ready to help each other. If anyone is in difficulty, we shall all
help him or her.
15. If we come to know of any breach of discipline in any centre, we shall all go there
and help restore discipline.
16.We shall take part in all social activities collectively.

STRUCTURE OF GRAMEEN BANK

Head office

Zonal offices

1 AO for 8 10-12 Branches

Area offices

Branches

1 center for 6-8 groups

1 ZO for 8 Area offices

1 Branch for 50-60 centers

centers
Groups in villages

Each Group will have 5 members

HOW IT FUNCTIONS

5 member group is formed, they must be neighbors but not relatives.

Group approves all loan requests, but liability lies with the individual.

Close supervision of credit by the group as well as the bank staff.

Group meets once in a week to plan out loan repayment.

Stress on credit discipline and collective borrower responsibility or peer

pressure.

Very small loans given without any collateral, no legal instrument, no joint
group guarantee or joint liability.

Loans repayable in weekly installment spread over a year.

Eligibility for a subsequent loan depends upon repayment of first loan.

Interest rate varies between 15-24 percentage p.a on flat basis and on a
weekly basis.

GRAMEEN BANK VS CITI BANK

vs

Grameen banks

To bring economic and social change to the poor

Located in rural areas

The bank goes to the customer

Based on trust

Looks at what the borrower can have

Conventional banks

Flexible payment scheme

Located in urban areas

Customers have to go to the bank

Based on collateral

Looks at what the borrower already has

Most owners and borrowers are poor women

Loans are for productive activity, not consumption

To make profit

Strict payment scheme

Most owners and borrowers are wealthy men

Loans could be used for consumption or other activities

OBJECTIVES

Extend banking facilities to poor

Eliminate the exploitation of the poor by money lenders

Create opportunities for self employment for the vast multitude of

unemployed people in rural Bangladesh.

Bring the disadvantaged, mostly the women from the poorest households,
within the fold of an organizational format which they can understand and
manage by themselves.

Reverse the age old vicious circle of low income, low saving and low
investment into virtuous circle of low income, injection of credit,
investment, more income, more savings, more investment, more income

TYPES OF LOANS IN GRAMEEN BANK

SECURED LOAN :
A) CAR LOAN
B) PROPERTY LOAN
C) MORTAGE LOAN

UNSECURED LOAN:
A) PERSONAL LOAN

SUBSIDIZED

DEMAND

CONCESSIONAL

PRESENTED BY:
SUSHMITHA.K.C
NANDINI.D
ASHA.R
NARESH
HARISH REDDY
SUSHMA
TABASSUM FATHIMA

M.COM 2

ND

SEM