GRAMEEN BANK is a non-coventional banking organisation founded by MR.MUHAMMAD YUNUS, a BANGLADESHI and now a NOBEL LAUREATE who was awarded NOBEL PEACE PRIZE for 2006.
BANGLADESH,erstwhile east pakistan, was created after INDO-PAK war in 1971.BANGLADESH separated from bengal province of INDIA during partition of INDIA in 1947.Liberation of BANGLADESH was a major blow to TWO NATION THEORY of MR. JINNAH,creator of PAKISTAN.However after liberation,BANGLADESH as a nation comprised of Muslims majority population which was illiterate and depended heavily on agriculture.The situation in BANGLADESH was no different at the time of independence than at time of partition. Politically ,too,BANGLADESH has had turbulent past surviving years of dictatorship.
Democracy,still in its early stages, is far from being mature democracy as in INDIA.With all these factors it was no surprise that BANGLADESH was considered to be one of the poorest and least developed nations in the world.
GRAMEEN BANK ,literally meaning -rural bank, was founded in BANGLADESH with an intention to help the average bangladeshi to become self reliant and independent. MR. MUHAMMAD YUUNUS, founder of GRAMEEN BANK, after finishing his education returned to his home country and decided to venture into a project - to provide loan to the poorest especially women to start their own business to help support themselves and their family.The amount given as a loan was small and most importantly it was given without any collateral. This was a revolutionary approach and contrary to the system of conventional banks.This helped these poor people who now had some money at hand without the exuberant interest rates of private money lenders.This system of finance-microfinance did wonders to lives of these poor people who grabbed the opportunity with both hands and did their best.This project has been hugely successful in the world and more so in BANGLADESH. This project has by now transformed the lives of millions of poor Bangladeshis.Impressed by the success of GRAMEEN BANK GOVERNMENT OF BANGALADESH pitched in and provided state funding.MR.MUHAMMAD YUNUS got the due recognition and was awarded NOBEL PEACE PRIZE for 2006.Now the UN has decided to start similar projects world over as part of poverty alleviation policy. Other voluntary organisations are also implementing such projects world over including INDIA.
Interestingly, when the conventional financial institutes are worried about repayment of loans provided by them after collateral guarantees the repayment history of GRAMEEN BANK and similar micro finance organisations has been more than 95% and in some cases 100% -all this without collateral.
In INDIA similar microfinance organisations are working for the upliftment of the poor in INDIA.But the sheer size of the needy population is a big hindrance for their work to show any significant impact.
BANGLADESH,erstwhile east pakistan, was created after INDO-PAK war in 1971.BANGLADESH separated from bengal province of INDIA during partition of INDIA in 1947.Liberation of BANGLADESH was a major blow to TWO NATION THEORY of MR. JINNAH,creator of PAKISTAN.However after liberation,BANGLADESH as a nation comprised of Muslims majority population which was illiterate and depended heavily on agriculture.The situation in BANGLADESH was no different at the time of independence than at time of partition. Politically ,too,BANGLADESH has had turbulent past surviving years of dictatorship.
Democracy,still in its early stages, is far from being mature democracy as in INDIA.With all these factors it was no surprise that BANGLADESH was considered to be one of the poorest and least developed nations in the world.
GRAMEEN BANK ,literally meaning -rural bank, was founded in BANGLADESH with an intention to help the average bangladeshi to become self reliant and independent. MR. MUHAMMAD YUUNUS, founder of GRAMEEN BANK, after finishing his education returned to his home country and decided to venture into a project - to provide loan to the poorest especially women to start their own business to help support themselves and their family.The amount given as a loan was small and most importantly it was given without any collateral. This was a revolutionary approach and contrary to the system of conventional banks.This helped these poor people who now had some money at hand without the exuberant interest rates of private money lenders.This system of finance-microfinance did wonders to lives of these poor people who grabbed the opportunity with both hands and did their best.This project has been hugely successful in the world and more so in BANGLADESH. This project has by now transformed the lives of millions of poor Bangladeshis.Impressed by the success of GRAMEEN BANK GOVERNMENT OF BANGALADESH pitched in and provided state funding.MR.MUHAMMAD YUNUS got the due recognition and was awarded NOBEL PEACE PRIZE for 2006.Now the UN has decided to start similar projects world over as part of poverty alleviation policy. Other voluntary organisations are also implementing such projects world over including INDIA.
Interestingly, when the conventional financial institutes are worried about repayment of loans provided by them after collateral guarantees the repayment history of GRAMEEN BANK and similar micro finance organisations has been more than 95% and in some cases 100% -all this without collateral.
In INDIA similar microfinance organisations are working for the upliftment of the poor in INDIA.But the sheer size of the needy population is a big hindrance for their work to show any significant impact.
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