Grameen Bank: The Grameen General Credit System
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : FINC045
Case Length : 14 Pages
Period : 1992-2006
Pub. Date : 2006
Teaching Note :Not Available
Organization : Grameen Bank
Industry : Banking
Countries : Bangladesh
To download Grameen Bank: The Grameen General Credit System case study (Case Code:
FINC045) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra
» Finance Case
Studies
» Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Introduction Contd...
Once a borrower fell off the track, she found it very difficult to move back on, since the rules which allowed her to return, were not easy for her to fulfill. More and more borrowers fell off the track.
|
Then there was the multiplier effect. If one borrower stopped payments, it encouraged others to follow."5 The changes were brought out in the form of new products, flexible loans and repayment schemes for borrowers who were unable to pay their loans on time, deposit services, pension services, etc.
The new system was completely demand driven; the products were tailored to the borrower's needs. The new flexible system allowed the borrowers to decide on the amount, term and payment schedule of the loan. GGS brought non-members into its fold by allowing them to deposit money and use other services.
|
|
Background Note
Yunus completed his PhD in Economics from Vanderbilt University in Nashville, Tennessee. He became the Head of Economics department in Chittagong University in Bangladesh. In 1971, Bangladesh got its independence. The country was hit by famine in 1974.
|
|
During this period, Yunus came face to face with the problems faced by poor women in Bangladesh when he visited Jorba village, where he saw poor women making bamboo stools. They were in the clutches of poverty and were forced to sell the products they made to moneylenders at very low prices. He extended a small loan of US$ 27 to US$ 42 to each of the women. They repaid the amount to the moneylenders and thus began the journey of Yunus and Bangladesh Grameen Bank.
When Yunus approached the banks in Bangladesh, asking them to lend loans to the poor, they were not willing to extend credit as the poor were not considered to be creditworthy and did not have any collateral to offer... |
Excerpts >>
|
|
