I learned what is Grameen Bank, almost 5 years ago, when my elder brother was appointed there. This bank is a type of microfinance institution that focuses on giving small loans to those who are poor, especially in rural areas.
The concept behind Grameen Bank is to offer small, collateral-free loans to the unbanked and underprivileged population, often targeting women to empower them economically.
Grameen Bank’s core mission is to provide access to financial services for the rural poor, who typically have no access to traditional banking because of a lack of collateral or a formal credit history. Typically, the loans have flexible terms and are low.
Grameen Bank uses a special group lending system. Small groups of borrowers—typically five to ten people—apply for loans together under this scheme. By holding each borrower accountable, the group lowers the default risk.
This bank's emphasis on women's empowerment is one of its distinguishing characteristics. I learned from my brother, as women are viewed as the most marginalised population in rural areas, they make up about 95% of their borrowers.
Grameen Bank makes it simpler for those without assets to get credit because it does not need security for loans, in contrast to regular banks. Usually, the loans are utilised for ventures that generate revenue, such as farming, livestock rearing, and small enterprises.
The interest rates are affordable and vary depending on the region and the bank’s policies.
I hope you understand the Grameen Bank meaning.
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What is Grameen Bank?
annu
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2024-11-26T18:38:50+00:00 2024-11-26T18:38:51+00:00Comment
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