The Grameen Bank microcredit model, conceived by Professor Yunus in 1974 in Bangladesh and now globally widespread, promotes both the economic development of a region and the development of human capital through a work method based on social bonds. This means organizing borrowers in small groups (5 people), as well as building a support network for small businesses.

The peculiar elements of the Grameen microcredit model are:

Training

Before being allowed to access to credit, potential borrowers must go through a short period of group training. In this period, they learn about microcredit technology and they also receive technical and professional support to plan and start up their business.

Group

The Grameen model uses the “Group” as an elective instrument and it promotes the formation and maintenance of a solid social network as a support to the borrower. Such a result is achieved both by organizing weekly meetings with groups of borrowers and by involving local partners from the earliest steps of the process.

Mentoring

The Grameen team offers technical and relational assistance, working side by side with borrowers during the entire microcredit process to guarantee sustainable and successful business projects. The mentoring activities and support networks will allow people to create or expand their trade, pay their loans back and generate social capital.

The entity in charge of spreading the microcredit mandates is Grameen Trust, a branch of the Grameen family that provides technical assistance and financial support to microfinance companies all over the world.

Attachments

Grameen Bank Data

Muhammad Yunus and the Grameen Bank