micro finance-grameen bank

8/9/2019 Micro Finance-Grameen Bank

1/61

Micro Finance

GRAMEEN BANK

Trina Bhagat (09020242005)Aikta Dube (09020242008)

Meghraj Gawande (09020242009)Rishika Mittal (09020242030)Susrita Sen (09020242036)

Vipra Khandelwal (09020242046)

MBA Agri Business2009 2011

Symbiosis Institute of International Business
http://images.google.co.in/imgres?imgurl=http://images.businessweek.com/ss/08/12/1211_most_influential/image/sks_microfinance.jpg&imgrefurl=http://images.businessweek.com/ss/08/12/1211_most_influential/28.htm&usg=__SugGbltwuHrExQLX4Xs4558xgro=&h=350&w=600&sz=68&hl=en&start=5&um=1&itbs=1&tbnid=dDbo5tWAAYlJ2M:&tbnh=79&tbnw=135&prev=/images%3Fq%3Dmicrofinance%2Bin%2Bindia%26um%3D1%26hl%3Den%26sa%3DN%26tbs%3Disch:1http://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


2/61

The Grameen Bank is a microfinance organization andcommunity development bank started in Bangladesh thatmakes small loans (known as microcredit or "grameencredit")to the impoverished without requiring collateral.

The system of this bank is based on the idea that the poor have skills that are under-utilized.
http://images.google.co.in/imgres?imgurl=http://www.agricultureinformation.com/mag/wp-content/uploads/2009/12/microfinance.png&imgrefurl=http://www.agricultureinformation.com/mag/%3Fp%3D5980&usg=__8STTpKrezvdpyrY21JuYg7OecmI=&h=336&w=500&sz=367&hl=en&start=25&um=1&itbs=1&tbnid=xzJ1DiUcPZertM:&tbnh=87&tbnw=130&prev=/images%3Fq%3Dmicrofinance%2Bin%2Bindia%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=https://www.allianz.com/static-resources/migration/images/jpg/saobj_1196773_microfinance_326.jpg&imgrefurl=https://www.allianz.com/en/press/news/commitment_news/community/news8.html%3Fmode%3Dprint&usg=__Ubv77tAhHF8hbQ5inWGMIvcOkSA=&h=218&w=326&sz=22&hl=en&start=21&um=1&itbs=1&tbnid=Q1R-V3yLwWGB6M:&tbnh=79&tbnw=118&prev=/images%3Fq%3Dmicrofinance%2Bin%2Bindia%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://vasanthseshadri.files.wordpress.com/2008/03/grameen-bank-meeting.jpg&imgrefurl=http://vasanthseshadri.wordpress.com/2008/03/04/understanding-glocalisation/&usg=__uQs9elORYd3kP0KX_rar3PP6LbE=&h=571&w=835&sz=566&hl=en&start=1&um=1&itbs=1&tbnid=kNI_28NAnM7xhM:&tbnh=98&tbnw=144&prev=/images%3Fq%3Dgrameen%2Bbank%26um%3D1%26hl%3Den%26sa%3DN%26rls%3Dcom.microsoft:en-US%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://www.iimb.ernet.in/microfinance/images/Grameen2007_0516005.JPG&imgrefurl=http://www.iimb.ernet.in/microfinance/prog2_Incubator.htm&usg=__krte9h_t5Q6fpbXR5edceNYi-ek=&h=960&w=1280&sz=483&hl=en&start=13&um=1&itbs=1&tbnid=oSpbF5PY4h6K-M:&tbnh=113&tbnw=150&prev=/images%3Fq%3Dgrameen%2Bbank%26um%3D1%26hl%3Den%26sa%3DN%26rls%3Dcom.microsoft:en-US%26tbs%3Disch:1http://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


3/61

A group-based credit approach is applied which utilizes the peer-pressure within the group to ensure Borrowers follow through and use caution in conducting

their financial affairs with strict discipline,

Ensuring repayment eventually Allowing the borrowers to develop good credit standing.

The bank also accepts deposits, provides other services, and

runs several development-oriented businesses.
http://images.google.co.in/imgres?imgurl=http://credit.frontlinesms.com/wp-content/uploads/microsave_post_03.jpg&imgrefurl=http://credit.frontlinesms.com/blog/&usg=__gcN2UkBvuaSu-mqObXihLapCk3Y=&h=290&w=590&sz=196&hl=en&start=35&um=1&itbs=1&tbnid=HFecg6mdIWwJJM:&tbnh=66&tbnw=135&prev=/images%3Fq%3Dmicrofinance%2Bin%2Bindia%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://www.tcnj.edu/~botero2/women.jpg&imgrefurl=http://www.tcnj.edu/~botero2/page2.htm&usg=__OkoAEhz9tcW6O8MFuHUc7PSR6Bs=&h=180&w=300&sz=16&hl=en&start=34&um=1&itbs=1&tbnid=kdJcvXzr3ThtvM:&tbnh=70&tbnw=116&prev=/images%3Fq%3Dgrameen%2Bbank%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://www.globaleducation.edna.edu.au/archives/secondary/casestud/bangladesh/1/grammen01.jpg&imgrefurl=http://www.globaleducation.edna.edu.au/archives/secondary/casestud/bangladesh/1/bank.html&usg=__MvO87e-qM3_Zxy0E2ftTwlqzlL8=&h=1232&w=1940&sz=300&hl=en&start=30&um=1&itbs=1&tbnid=bK2suPyFu4iGGM:&tbnh=95&tbnw=150&prev=/images%3Fq%3Dgrameen%2Bbank%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://graphics8.nytimes.com/images/2006/10/20/world/20bangla.1_600x371.jpg&imgrefurl=http://www.nytimes.com/2006/10/20/world/asia/20bangla.html&usg=__W4N_q7_3c1_cYIOjMdWLPNjN33s=&h=371&w=600&sz=102&hl=en&start=11&um=1&itbs=1&tbnid=9YZ6Ay9RAxKixM:&tbnh=83&tbnw=135&prev=/images%3Fq%3Dgrameen%2Bbank%26um%3D1%26hl%3Den%26sa%3DN%26tbs%3Disch:1http://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


4/61

A Brief History

1976 Professor Muhammad Yunus ,

a scholar at Vanderbilt University

Professor at University of Chittagong,

Launched a research project to examine the possibility of designing a credit delivery system to provide banking servicestargeted to the rural poor.
http://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


5/61

A Brief History contd

In October 1983, the Grameen Bank Project was transformed into anindependent bank by government legislation.

The organization and its founder, Muhammad Yunus, were jointlyawarded the Nobel Peace Prize in 2006; the organisation's Low-costHousing Programme won a World Habitat Award in 1998.

In Bangladesh 80 percent of the poor families have already been reached with microcredit.We are hoping that by 2010, 100 per cent of the poor families will be reached .
http://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


6/61

Awards for Grameen bank

SWITZERLAND : Aga Khan Award For Architecture : 1989

BELGIUM : King Baudouin International Development Prize : 1993

BANGLADESH : Independence Day Award : 1994

MALAYSIA : Tun Abdul Razak Award : 1994

UNITED KINGDOM : World Habitat Award : 1997

INDIA : Gandhi Peace Prize : 2000

U.S.A : Petersberg Prize : 2004

Norway : Nobel Peace Prize : 2006


7/61

Key Features of Grameen Bank

Owned by the Poor

No Collateral, No Legal Instrument, No Group-Guarantee or JointLiability

97 per cent Women

Branches Grameen Bank has 2,563 branches. It works in 81,343 villages.

Total staff is 23,275.

Over Tk 339 billion Disbursed

Loans Paid Off At Death
http://images.google.co.in/imgres?imgurl=http://i170.photobucket.com/albums/u270/RichardFr/KivaGroupLoans.jpg&imgrefurl=http://www.kivafriends.org/index.php%3Ftopic%3D2.0%3Bprev_next%3Dnext&usg=__b3TM1erjMN-hYHFwY-GB5JcwZgw=&h=768&w=1024&sz=285&hl=en&start=36&itbs=1&tbnid=gZlFjktG5ytpeM:&tbnh=113&tbnw=150&prev=/images%3Fq%3Dgrameen%2Bbank%26start%3D18%26hl%3Den%26sa%3DN%26gbv%3D2%26ndsp%3D18%26tbs%3Disch:1http://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


8/61

Recovery Rate 98 per cent

Beggars As Members

Housing For the Poor Education Loans & Scholarships

Grameen Bank-Created Companies

Grameen Fund : Tk 373.2 million (US $ 6.38 million) Grameen Krishi Foundation : Tk 19 million (US $ .33million)

Grameen Motsho (Fisheries) Foundation : Tk 15million (US $ .26 million)

Grameen Shakti : Tk 9 million (US $ 0.12 million) Grameen Motsho (Fisheries) Foundation : Tk 8

million (US $ 0.11 million) Grameen Kalyan
http://images.google.co.in/imgres?imgurl=http://i.treehugger.com/files/GrameenBank.jpg&imgrefurl=http://www.treehugger.com/files/2006/10/grameen_bank_fo.php&usg=__YFEw0HRmG0sMJUM5UYpxnXblDrk=&h=212&w=468&sz=46&hl=en&start=27&um=1&itbs=1&tbnid=sMdZ-0ilyv9qZM:&tbnh=58&tbnw=128&prev=/images%3Fq%3Dgrameen%2Bbank%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://www.indiadaily.org/images/grameen-bank-india11_26.jpg&imgrefurl=http://www.indiadaily.org/entry/legal-framework-necessary-for-micro-credit-policy-to-eliminate-poverty-in-india-muhammad-yunus/&usg=__zfRsaoqcmeoa_-hLCZnzXwGYiUM=&h=291&w=450&sz=17&hl=en&start=33&um=1&itbs=1&tbnid=lw44OG00gg9BDM:&tbnh=82&tbnw=127&prev=/images%3Fq%3Dgrameen%2Bbank%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


9/61

Grameen Bank MembershipPatterns (women and men)

Sources: Hossain 1988; Khandker, Khalily and Khan 1994

Men declined from55% to 6%

Women borrowersincreased from45% to 95%, (700 times)


10/61

Growth in Grameen Bank Membership, 1976-2001

Source: Grameen Bank Annual Report


11/61

Hierarchical Structure


12/61

HOW IS IT DIFFERENT ???

Grameen system is collateral- free.

All human beings, including the poorest,are endowed with endless potential.

Grameen Bank is owned by poor women.

Coming out of social and economic visions.

Ownership of the houses built with Grameen Bank loans remain with the borrowers, i.e. the women.
http://images.google.co.in/imgres?imgurl=http://rsfsocialfinance.org/wp-content/uploads/2009/06/women-loan-docs.jpg&imgrefurl=http://rsfsocialfinance.org/2009/06/unitus-investment-supports-innovative-approaches-to-microfinance/&usg=__-XLq9y63tIWVsEDbv2w2AkF_QD8=&h=685&w=1024&sz=331&hl=en&start=46&um=1&itbs=1&tbnid=SkAH5tJVMAyu_M:&tbnh=100&tbnw=150&prev=/images%3Fq%3Dmicrofinance%2Bin%2Bindia%26start%3D40%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D20%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://www.transitionsabroad.com/listings/work/internships/articles/images/microfinance-internships-1.jpg&imgrefurl=http://www.transitionsabroad.com/listings/work/internships/articles/microfinance-internships-abroad.shtml&usg=__gYgglfgIA_zQvukG1HPr2HvgNuc=&h=319&w=425&sz=42&hl=en&start=34&um=1&itbs=1&tbnid=YBJgysCczAsNTM:&tbnh=95&tbnw=126&prev=/images%3Fq%3Dmicrofinance%2Bin%2Bindia%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://www.citibank.com/citi/citizen/asia/images/micro_01.jpg&imgrefurl=http://www.citibank.com/citi/citizen/asia/microfinance.htm&usg=__QDVeZxAJRtzPl3pfZWJr4LpfSes=&h=270&w=328&sz=22&hl=en&start=36&um=1&itbs=1&tbnid=wwLQyh1Wha-KMM:&tbnh=97&tbnw=118&prev=/images%3Fq%3Dmicrofinance%2Bin%2Bindia%26start%3D18%26um%3D1%26hl%3Den%26sa%3DN%26ndsp%3D18%26tbs%3Disch:1http://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


13/61

Contd

No provision in the methodology to enforce a contract by anyexternal intervention.

Assist the borrower in difficulty, and makes all efforts to help

her regain her strength and overcome her difficulties.

No interest is charged after the interest amount equals the principal.

No liability is transferred to the family.


14/61

What is Micro Credit ?

Microcredit" did not exist before the seventies

Means agricultural credit, or rural credit, or cooperative credit,or consumer credit, credit from the savings and loanassociations, or from credit unions, or from money lenders

Labels to various types of microcredit

To specify which category of microcredit
http://journeysforchange.posterous.com/journeys-for-change-biplab-das-on-sks-microfihttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


15/61

Classification of Microcredit

Traditional informal microcredit

Microcredit based on traditional informal groups

Activity-based microcredit through conventional or specialised banks

Rural credit through specialised banks

Cooperative microcredit


16/61

Grameen Credit

It promotes credit as a human right.

Its mission is to help the poor families to help themselves toovercome poverty

Most distinctive feature of Grameencredit is that it is not based on anycollateral, or legally enforceable contracts

It is offered for creating self-employment for income-generating

activities and housing for the poor, as opposed to consumption

In order to obtain loans a borrower must join a group of borrowers


17/61

Three Cs of CREDIT

Character : Means how a person has handled past debtobligations

Capacity : Means how much debt a borrower can comfortablyhandle

Capital : Means current available assets of the borrower, such

as real estate , savings or investment that could be used torepay debt


18/61

Role Of Microcredit

Poverty eradication

Empowering people

Access to savings

Led to non-conventional forms of lending

Providing credit and savings services to the entrepreneurial poor


19/61

Knowledge of the Area

For the Grameen Bank to operate in an area and provide MF it is important toknow its clients and the area in which they operate

Economics: No control over capital

Demographics: Has half the area of Malaysia or Japan, but it has over 160million people, almost 6 times more populated than Malaysia

Social Structure: Muslims and Hindus live in peace and harmony in thevillage

State of Living: Family lives in a house worth at least Tk. 25,000


20/61


21/61

Poor Clients as ValuedCustomers Human Bonsai

Even beggars get special attention

Raises status of poor women

97 per cent of Grameen Bank's borrowers are women
http://journeysforchange.posterous.com/journeys-for-change-biplab-das-on-sks-microfihttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


22/61

Institutional Ownership


23/61


24/61

Objectives

To extend the banking facilities to the poor men and women.

To eliminate the exploitation of money lenders.

To create opportunities for the self- employment for the unutilized andunderutilized manpower resource.

To bring the disadvantaged people within the folds of some organizationalformat which they can understand and operate and can find socio-economicand political strength in it through mutual support.

To reverse the age-old vicious circle of poverty low income, low capitalaccumulation


25/61

Owned by the Poor

It is owned by the poor borrowers of the bank who are mostlywomen.

It works exclusively for them.

Borrowers of Grameen Bank at present own 95 per cent of thetotal equity of the bank.

Remaining 5 per cent is owned by the government.


26/61

Customers

Total number of borrowers is 8.01 million,

97 per cent of them are women.
http://www.flickr.com/photos/mckaysavage/2229752965/http://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


27/61

No Collateral, No Legal Instrument,No Group-Guarantee or Joint Liability

No collateral against its micro-loans.

Since the bank does not wish to take any borrower to the court of law in case of non-repayment, it does not require the borrowers tosign any legal instrument.

Although each borrower must belong to a five-member group, thegroup is not required to give any guarantee for a loan to its member.

Repayment responsibility solely rests on the individual borrower,while the group and the centre oversee that everyone behaves in aresponsible way and none gets into repayment problem. There is noform of joint liability, i.e. group members are not responsible to payon behalf of a defaulting member.


28/61

Branches and employees

Grameen Bank has 2,563 branches.

It works in 81,343 villages.

Total staff is 23,275
http://flickr.com/photos/jeeves/http://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


29/61

Amount of loan disbursed

Total amount of loan disbursed by Grameen Bank,is Tk 506.29 billion (US $ 8.86 billion).

Out of this, Tk 450.20 billion (US $ 7.86 billion) has been repaid.

Current amount of outstanding loans stands at TK 56.09 billion(US $ 811.52 million).

During the past 12 months (from February09 to January'10)Grameen Bank disbursed Tk. 81.20 billion (US $ 1176.20million).


30/61

Amount of loan disbursedcontd Monthly average loan disbursement over the past 12 month

was Tk 6.77 billion (US $ 98.02 million).

Projected disbursement for year 2010 is Tk 97.00 billion (US

$1403 million), i.e. monthly disbursement of Tk 8.08 billion(US $ 116.92 million).

End of the year outstanding loan is projected to be at Tk. 70.00 billion (US $ 1013 million).


31/61

Recovery rate

97 per cent Loan recovery rate is96.54 per cent


32/61

Financing of loans

Grameen bank finances 100% of its loans from its bank deposits.

Over 54 per cent of its deposits come from banks own borrowers.

Deposits amount to 149 per cent of the outstanding loans. If

we combine both deposits and own resources it becomes 160 per cent of loans outstanding.


33/61

No Donor Money, No Loans

In 1995, GB decided not to receive any more donor funds.

Since then, it has not requested any fresh funds from donors.Last installment of donor fund, which was in the pipeline, wasreceived in 1998.

GB does not see any need to take any donor money or eventake loans from local or external sources in future. GB's

growing amount of deposits will be more than enough to runand expand its credit programme and repay its existing loans.


34/61

Credit lending models

Associations

Bank guarantees

Community banking

Cooperatives

Credit unions

Non-governmentalorganizations

Peer pressure


35/61

Grameen model

A bank unit is set up with a Field Manager and a number of bank workers, covering an area of about 15 to 22 villages.

The manager and workers start by visiting villages tofamiliarise themselves with the local milieu in which they will

be operating and identify prospective clientele, as well asexplain the purpose, functions, and mode of operation of the

bank to the local population.


36/61

Grameen model contd

Groups of five prospective borrowers are formed; in the first stage,only two of them are eligible for, and receive, a loan.

The group is observed for a month to see if the members areconforming to rules of the bank.

Only if the first two borrowers repay the principal plus interest over a period of fifty weeks do other members of the group becomeeligible themselves for a loan.

Because of these restrictions, there is substantial group pressure tokeep individual records clear. In this sense , collective responsibilityof the group serves as collateral on the loan.


37/61

Organization andManagement


38/61

Products and Services

Life Insurance

Deposits

Pension Fund forBorrowers

Loan Loss Reserve

Retirement Benefits PaidOut

Micro-enterprise Loans

Telephone-Ladies


39/61

Interest Rates

For Government run microcredit programs flat interest rate of 11 % is decided.

It amounts to about 22 per cent at declining basis.

Four Interest Rates for loanso 20% (declining basis) for income generating loans

o 8% for housing loanso 5% for student loanso 0% (interest-free) loans for Struggling Members (beggars)


40/61

Micro finance institutions (MFIs) charge interest which covers the highcost of:

making very small loans

personally servicing each client every week the cost of managing the center meetings

the peer support group process

personal development and health

other such activities which help improve the lives and futurefor their clients


41/61

Profit and Loss Account

Property and Assets 20 07 2008
http://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.pnghttp://en.wikipedia.org/wiki/File:Grameen_bank_logo.png


42/61

(Average Taka/Dollar conversion rate) 68.62 68.72

Cash in hand 99,093 55,278

Balance with other Banks 13,547,042 19,276,189

Investment 356,540,508 418,077,768

Loans and Advances 547,165,254 666,282,856

Fixed assets-at cost less accumulated depreciation 16,241,875 16,927,661

Other assets 71,269,223 84,279,874

Total 1,004,862,995 1,204,899,626

Capital and Liabilities

Authorized 7,286,505 50,931,315

Paid Up 4,634,217 5,209,546

General and Other reserves 80,849,537 88,452,230

Revolving Funds - -

Deposits and Other Funds 810,853,326 994,096,656

Borrowings from banks and foreigninstitutions

26,133,437 25,192,353

Other Liabilities 82,392,658 91,948,840

Profit and loss account - -

Total: 1,004,862,995 1,204,899,626

Contigent Liabilities 83,344 -


43/61

Appropriate MIS

2,395 out of 2,459 branches have been computerised.

Branch staff are provided with pre-printed repayment figuresfor each weekly meeting

Thirty six zones, out of 39, are connected with the head office,and with each other, through intra-net


44/61

Policy For Opening New Branches New branches are required to fund themselves entirely with the

deposits they mobilise

Crossing the Poverty-Line 64 per cent of Grameen borrowers' families of Grameen

borrowers have crossed the poverty line.


45/61

Development of HumanResource


46/61

Oct 2 1983, grameen bank was transformed into anindependent bank.

Today Grameen bank has a total of 2319 branches.

Grameen Bank provides colour-coded stars to branches andstaff for 100 percent achievement of a specific task.

A branch (or a staff) having five-stars indicate the highestlevel of performance.


47/61

At the end of December 2006

1553 branches, out of the total of 2,319 branches, received stars (green) for maintaining 100 per centrepayment record.

1627 branches received stars (blue) for earning profit.

1375 branches earned stars (violet) by meeting all their financing out of their earned income and deposits.

337 branches have applied for stars (brown) for ensuring education for 100% of the children of Grameenfamilies.

54 branches have applied for stars (red) indicating branches those have succeeded in taking all its

borrowers' families (usually 3,000 families per branch) over the poverty line.


48/61

After this establishment, the bank started experiencingtremendous demand from foreigners around the world, whowanted to learn further about the operations of Grameen Bank.

Due to overwhelming requests from abroad, Grameen BanksHead Office created the training program for internationals.

In 1987, the Managing Director officially inaugurated theestablishment of the Grameen Bank Training Program.


49/61

Objectives

The objectives of GBs training programs are to:

Arouse curiosity

Stimulate interest on the subject of Microfinancing

Encourage responsibility of self-motivated learning

Learn and share with others

Discover individual role in the organization and the global community

Recognizing the diverse backgrounds of participants


50/61

Training programs

Exposure Visit:

Exposure visits are provided to gain first-hand knowledge on the philosophy and operations of Grameen Bank and may be organized

any time, for any period.

Participants may visit individually or in a group from a particular institution.

A standard exposure visit includes a one-day briefing at the head officefollowed by a field visit (assignment to a branch), for few days andfinally ending with a review, again at the head office.


51/61

Grameen Basic TrainingProgram

The Grameen Bank organizes basic training programsfrom for replicators of the Grameen model in differentcountries to impart training on the credit delivery-

recovery mechanism of Grameen.

The basic training program includes rules, accounting,and monitoring systems of Grameen Bank.

For senior executives and field workers different coursesare offered. Duration of these courses is three to four weeks.


52/61

MEDIAPress & Journalist:

This program is specifically designed for members of the press andmedia interested in filming documentaries about Grameen Bank, itsoperations, and its borrowers.

Research :Researchers are also welcome to perform their research accordingto their own objectives for any length of duration.

Researchers are required to send a Resume/CV along with an

introductory letter from their respective institutions, as well as the purpose of their research, details of their research methodology,expected time frame, and whether or not they will be using asurvey questionnaire.


53/61

Internship Students from various educational institutions from all over the world can

join as unpaid intern at Grameen Bank.

Interns can learn in depth, through field visits, about the philosophy andoperational procedures of Grameen Bank, as well as the impact of Grameen on the economic and cultural life of Grameen Bank members

and the community. Internship with Grameen Bank is open and flexible and there is no fixed

schedule for internship.

The flexibility of the internship allows interns to supplement their already

established academic objectives. Interns are required to send a Resume/CV along with an introductory

letter from their respective institutions. Internship ProgramSchedule/Itinerary


54/61

Jobs that interns are requested to do:

Assistance in drafting and preparing official documents

Correspondence Translating and editing documents Task specific internet research Assistance with and updating of websites

Collection and writing of case studies for publications


55/61

Corporate Philosophy


56/61

It varies depending upon the country and culture, the institutionaltype etc.

Nevertheless the basic philosophy remains the same.

Trust, incentives, commitment, simplicity, and standardization, alongwith service, transparency, flexibility, accountability, profitability,training of staff, and knowledge of the local market.

Sugianto said, You can succeed in microfinance only if u love it.


57/61

Founders foundation

Muhammad Yunus is that rare thing: a bona fide visionary. His dream is the totaleradication of poverty from the world.

'Grameen', he claims, 'is a message of hope, a programme for putting homelessnessand destitution in a museum so that one day our children will visit it and ask how wecould have allowed such a terrible thing to go on for so long'.

Credit is the last hope left to those faced with absolute poverty. That is whyMuhammad Yunus believes that the right to credit should be recognized as afundamental human right.

It is an appeal for action: we must concentrate on promoting the will to survive and

the courage to build in the first and most essential element of the economic cycle Man


58/61

P bl f d b G


59/61

Problems faced by Grameenbank 1995 Boycott Movement - Men in the communities joined local

politicians who disapproved of the banks mission of turning womeninto entrepreneurs and pressured borrowers to stop repaying loans.

1998 Floods - Floods ravaged the country, leaving much of the population without Homes and businesses; Resulting in lower repayment rates and some dropouts

Transparency and Credibility Issues - Under the classic GrameenBank model Borrowers who were late in their loan payments were

banned from the loan process until they had repaid in full. Criticsaccused Grameen Bank of unwillingness to fully disclose the impactof these crises on its financial position.


60/61

Conclusion5 common elements of sustainable MFIs are-

Knowledge of the commercial microfinance business and its clients.

Institutional ownership.

Organization and management.

Development of human resources.

Corporate philosophy.


61/61

micro finance-grameen bank

Documents