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pawn shops
livestock credit
fisheries credit
handloom credit
C) Rural credit through specialised banks.
D) Cooperative microcredit
cooperative credit
credit union
savings banks
Muhammad Yunus
Nobel price winner for his contribution of micro
credit
Microfinance institutions in India
There are various types of microfinance companies operating in India.
Joint Liability Group (JLG) .
Self Help Group (SHG) .
The Grameen Bank Model.
Rural Cooperatives.
Self Help Group Grameen Bank Model Rural Cooperatives
Joint Liability Group
Formal structure
More formal with consisting of Unit
All members interact All members interact
defined positions in Manager, Field
Structure with the financial with the financial
each group like Manager, etc. Who
institution individually institution jointly
treasurer and secretary interact with every
family in a village
Mohammed yunus –banker to the poor
o It took just 27$ for him to change the world with lasting
progession called grameen bank.
o He re-invented banking.
Schooling
Graduation
Job
Business
Provided funding
Women
Craftman
Farmers
Grocery stores
Dairy cows (buying and selling milk to co-operatives society)
Buying materials for furniture
Loans for hand pump water well that provided drinking water
for entire community (group loan)
Grameen banks works without
Collateral
Credit checks
Written contract
According to the bank officials 97% of entire loans given to the
poor are repaid.
Over the years the bank has given more than 13 billion$ to 8.4
million borrowers helping to improve the community.
Since 1992 the poverty rate in Bangladesh has reduced from
56% to 31% .
In 1979 this project became successful and central bank of
india began to sponsor it.
In octobor 1983 grameen bank transformed into independent
bank.
How the loan works?
Acquire loans
Housing loans
Interest rates:
Government of Bangladesh has fixed interest rate for
government-run microcreditprogrammes at 11 per cent at flat
rate.
It amounts to about 22 per cent at declining basis.