Business Model of Grameen Bank

GRAMEEN BANK Poverty is not created by the poor people. So we shouldn't give them an accusing look. They are the victims. Poverty has been created by the economic and social system that we have designed for the world. It is the institutions that we have built, and feel so proud of, which created poverty. It is the concepts we developed to understand the reality around us, made us see things wrongly. The essence of my argument…is that in order to reduce, and ultimately eliminate, poverty we must go back to the drawing board Yunus asked her how much money she required to be free of the moneylenders. Four dollars was the amount. Yunus found 41 other villagers in Jobra and lent them a total of $27. Khatun’s income immediately jumped from $0.02 per day to $2.00 per day Yunus simply told those borrowers to pay him back when they could, and was a little surprised to find that all of them repaid him in full. So, he began lending more money with the same result. He petitioned local banks to start making similar loans, an idea they rejected. When he asked them their reasoning, they replied that the poor are not credit worthy. Yunus replied,
“How can you say that they are not credit worthy. I give them money, and they pay me back.” It was at that time that I decided to become a sponsor for all loans, the total being close to 10.000 taka (around $300 USD)”, said M. Yunus. Yunus simply told those borrowers to pay him back when they could, and was a little surprised to find that all of them repaid him in full Yunus tried to convince the banks to adopt his methods and begin employing them in providing loans to the rural poor, but the bankers were skeptical that Yunus’ successes could be