This bank is located in Bangladesh. This bank make small loan to help the impoverished without any colleteral. The target market is the village women instead of their man(mostly drunkard and gambler). These women came from several family to form a group and discussed the profitible product.
Usually the Grameen Bank will provide the capital to help these women to start their business and this group of women will pay the debt to the bank if their business is making profit. Then, this bank is going to use the moeny from the debt to another impoverished group.
The system of this bank is based on the idea that the poor have skills that are under-utilized. A group-based credit approach is applied which utilizes the peer-pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing.From Wikipedia
This idea is came from professor Muhammad Yunus, a Fulbright scholar at Vanderbilt University and Professor at University of Chittagong. Professor Muhammad Yunus, were jointly awarded the Nobel Peace Prize in 2006.
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