Grameen Bank Model

• Description: This is a well-known microfinance model that started in Bangladesh by Dr. Muhammad Yunus. Grameen Bank focuses on providing small, collateral-free loans to groups of individuals, particularly women, who form borrower groups. The group collectively guarantees loan repayments.
• Success Story: Grameen Bank has been highly successful, with millions of borrowers, mostly women, benefiting from small loans to grow businesses and improve living conditions. The bank’s loan repayment rates are exceptionally high due to the group-based guarantee.
• Key Features:
• Group-lending mechanism
• Peer pressure and support to ensure repayments
• Focus on poverty alleviation
• Loans for income-generating activities