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` Traditional banks- lend to poor people who had no collateral.
` Loan from Janata Bank.
` Grameen Project was launched in January 1977.
` Muhammad Yunus developed lending methodology.
` Loans with miniature daily payments.
Detect problems early and increase borrowers' confidence.
This was soon changed to weekly payments to reduce the accounting
load.
  



` Grameen bank- 1983.

` Government's ownership gradually reduced- 60/40 majority
to 12/ 88 % (1993).
` By mid-1990s, Grameen was lending US$500 million a year. It
rose to $2 billion in 1998.
` Established Grameen Foundation in 1997.
  


 



 To enable the poor, especially the poorest, to create a world without
poverty.

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` Global network of 55 microfinance institution (MFI) partners.
` Reached more than 34 million people in 24 countries.
` Introduced sustain technology initiatives (Village Phone) in
Cameroon, Kenya, Rwanda, and Uganda.
` Have presence in 28 countries.
  


 



1. Weseektoempowertheworld͛spoor,especially thepoorestwomen
2. We hold ourselves and our partners accountable for transparency and measurable
results,including social andfinancial performance
3. Wechampion innovation thatmakesadifferenceinthelivesofthepoor
4. We first seek to form partnerships with those who can advance our mission before
actingalone
5. Werespect, investinandpromotelocal social entrepreneurs andlocalownership
6. Wehonourthevoice,professionalism andintegrity ofourstaffandvolunteers.



` Banking for the poor

` Small loans -usually less than US$200
` To start, establish, sustain, or expand very small, self-supporting
businesses.
` Recycling of loan dollars- each loan is repaid usually within six months to a
year
` No collateral
` Very client-friendly- go to their clients to provide loans and receive
payments, rather than requiring their clients to come to them
` Focal centres- centre meetings
` Peer support system
 ?  



` Reach out to the very poor and deliver microfinance services
to local clients daily
` Educate local communities
` Collect weekly loan payments
` Assist clients in solving some of the life challenges
` Social services, such as basic health care for clients and their
children.
 

 


` Microcredit refers specifically to loans and the credit

needs of clients
` Microfinance covers a broader range of financial
services that create a wider range of opportunities for
success-
ÿ

1. Financial services include savings, insurance, housing
loans and remittance transfers.
2. Entrepreneurial and life skills training, and advice on
topics such as health and nutrition, sanitation,
improving living conditions, and the importance of
educating children.
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` High cost of making very small loans
` Personally servicing each client every week.
` Cost of managing the ͞center meetings͟
` The peer support group process
` Providing information on social services, personal
development, health and other critical information
` High rate on borrowings by MFIs
` MFI interest rates can range from 18 to 60 percent
` Money lenders- charges between 120 and 300 percent.
£
 


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` Grameen foundation provides funding for MFIs through direct
loans, grants, loan guarantees and other innovative financing
techniques.
` Funding from individuals, philanthropists, foundations, and
governments and international institutions such as the world
bank.
` Traditional banks
` The interest paid by clients on microfinance loans goes back
into the program to cover costs and fund more loans.



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` The Grameen Foundation provides microfinance support in
partnership with MFIs.
` These MFIs provide tailor made products and services
according to the needs of the community they serve.
` The support group comprises:
a. Pool of consultants
b. Expert in-house professionals
c. Individual MFIs
` Microfinance support has two major constituents:
a. Technical Assistance
b. Social Performance Management



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a) Effectively target the poorest of the poor and women.
b) Utilize cost-effective tools to measure progress out of poverty for existing
clients, thus advancing the goal of developing standards and metrics for
social impact performance.
c) Increase efficiencies in the delivery of financial services.
d) Achieve full cost-recovery and profitability, and utilize profits to provide
better and more economical services to clients.
e) Use microfinance as a platform for broad social change by delivering a
wider array of financial and non-financial products and services in pursuit
of poverty alleviation.



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1. Technical assistance to MFIs is provided in 22 nations.
2. Tailor made services are provided for each tier.
3. It provides technical assistance customized to each MFI͛s needs, from
those in the start-up phase to mature, large organizations, with a focus on
promoting sustainable expansion, enhanced anti-poverty impact, and
breakthrough applications of technology.
4. It offers the network of partners pioneering financing strategies and
creative information technology solutions, always moving them toward
access of commercial capital.
5. It is committed to making the tools and learning, and those of our
partners, available to the wider microfinance movement, through
adhering to an ͞open source͟ philosophy of sharing successful strategies.
 


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1. The goal of Grameen Foundation͛s work is to ensure the partners are

moving their clients out of poverty in five years and to foster good
practices for measuring the progress of individuals͛ movement across
poverty lines.

2. MFIs must show results, yet many do not have the tools to evaluate how
well they are fulfilling their mission of reducing poverty, reaching people
excluded from financial services, empowering women, or promoting
community solidarity.



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` Progress out of Poverty Index (PPI) is Management as well as

Measurement tool.
` It allows MFIs to better determine their clients͛ needs.
` It provides faster results to the MFIs.
` It helps the MFIs to adhere to their mission.
` It helps in classification of clients.
` It improves the program, product and delivery of services.
` It increases the MFIs competitive abilities and responsiveness.



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ÿ ÿ
  ÿ

 ÿ ÿ
` Easy to collect
` Uses non financial indicators ( family size, school going
children etc.)
` Each PPI is country specific.
` PPI based on country͛s income and expenditure levels.
` Measurements are taken against the benchmark and relative
movements could be easily traced out.



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 ÿ

 ÿ 
` Since 2005, Grameen Foundation, the Consultative Group to Assist the Poor
(CGAP) and the Ford Foundation have been piloting the Progress out of
Poverty Index in Latin America and Asia.
` 19 PPIs have been developed. Of these, Grameen Foundation has supported
the development of nine (in Bangladesh, Bolivia, Haiti, India, Mexico,
Morocco, Pakistan, Peru and the Philippines)
` Once a PPI is built for a market, it is intended for public use and Grameen
Foundation makes it available to all who wish to use it.
` Grameen Foundation is also working with USAID as it develops its
legislatively-required poverty measurement tools.