What is Grameen America?
Grameen America is a microfinance organization with a mission to alleviate poverty through entrepreneurship. Grameen America provides loans, savings programs, credit establishment and other financial services to the working poor, especially women, in the United States.
Grameen America provides small loans, known as “microloans”, and other financial services to people with very low incomes, especially women, who are looking to start or grow their small businesses. Grameen America relies on the Grameen lending model developed by Grameen Bank in Bangladesh.
Poverty in New York
The NY State poverty level is 13.8% or approximately 1.7 million people.
In New York City 650,000 people live below the poverty line.
Women are particularly vulnerable to poverty, especially single mothers.
- Single working mothers numbered approximately 312,600 in 2000, making up 10.35% of total households in NYC.
- A family headed by a single mother is 600% more likely to live below the poverty line than a family with a mother and a father.
Grameen America will serve its clients, especially women by:
-Providing them with small loans so that they can start or build small or home businesses, with terms that are an attractive alternative to predatory lenders.
-Creating a culture of savings and individual responsibility in all clients.
-Establishing and improving client credit ratings so that clients can better participate in the mainstream American economy.
-Educating clients about getting loans, building savings and managing credit as well as mainstream financial institutions as a built-in part of the Grameen America lending program.
What is the Grameen Lending Model?
Grameen America uses the Grameen group lending and savings model that has been developed and refined over thirty years by the Grameen Bank. The basis of the system is a peer group model in which borrowers encourage, support and learn from each other.
Grameen America is the U.S. operation of Grameen Bank, the “microlending” institution started in Bangladesh by Muhammad Yunus. Microlending is the lending of small amounts of money to people who are impoverished, unemployed or otherwise don’t meet even the minimal requirements to get traditional credit. Grameen, the world’s largest microlender, has lent money to more than 7.6 million people around the world, 97 percent of them women. It employs more than 24,000 people.
The company’s U.S. operations started last year in the Jackson Heights neighborhood in Queens, says Tanya Palit, a project manager with Grameen. Grameen has lent $1.2 million to 440 self-employed, low-income women – 99.5 percent of which has been repaid on time.
Palit says, Grameen is looking to raise $2 million from the community to put a branch in the Triangle, probably in Wake County. Early efforts already are under way, she says.
It would likely take around a year from the time the money was raised to the time that Grameen could open a branch. The lender plans to apply for North Carolina approval to begin operation as a credit union.
“Bankers help us because we help mainstream these people, people who are so low-income that they wouldn’t be able to qualify for a loan. The goal is eventually to get people into the financial mainstream. And regulators really like Grameen because we’re extremely accountable, and we’re working really hard with a group of people who often fall through the cracks of social support.”
Posted by: Mimmy Duhaylungsod
I believe, that the Grameen bank proves that entrepreneurship really take part in the society today. The grameen bank is a good example of helping women in establishing a small venture that will help boost the economy, grameen bank helps the women more to improve its living. I admire Mohammad Yunus for conceptualizing and implementing this bank which helped people and will help more.
ReplyDelete-Geramarie Dianzon
Grameen bank has a nice concept. I believe that Muhammad Yunus will be able to encourage more less fortunate people especially the women in lifting themselves out of poverty. Muhammad Yunus was able to conceptualize a business out of the prevailing social problems. Entrepreneurship can really have a big social impact in the society today.
ReplyDeleteFor me Grameen America is a very good lending company, this can help women who usually stays at home and taking care of her kids, this is one way to earn money even if you just stay at home with your children, they can start a small business. this can be a start of young woman to be a good entrepreneur in the future.
ReplyDeleteMohammad Yunus is a great influence to all of us =)
-Ariane Lawis
Who would've thought there is poverty in the Big Apple? Even one of the busiest and well-known city in the world is affected by economic crisis. Not all can afford to live a very stylish and classy life because not all have a career like that of a magazine editor or a real estate broker. Some families belong to that bracket with very low income that even meeting the minimal requirement to earn credit for their basic needs is impossible. The Grameen bank is more than just an opportunity for many to make their lives better, it's a blessing to those who want to change their way of living and get started with a new business, a new career and a new life.
ReplyDeleteRose Ann Santos
I think that Grameen America is like a stepping stone to women who are financially challenged. Especially for those single mothers who can start their own business at home; they can earn money for their children at the same time can also guide and take care of them. It is very difficult for a single parent to look for work that can be both beneficial emotionally, physically and financially to mother and child. Providing small loans would be very helpful and affordable to pay back. Not only that, to be able to make the business grow with their help and guidance would really make one be more responsible and strive harder to achieve success. There is a saying that “ home is where the heart is.” For me this means that this is the place where one can excel, be comfortable, be at ease and can work at own pace, be more creative, efficient and most specially happy with the right kind of disposition because you can be with your loved ones. With the help that Grameen is willing to give small entrepreneurs, everything is reachable and possible.
ReplyDelete---Gottezy De Jesus
I'm glad to know that despite of financial crisis that we face today,still there are people who turn this problematic situation into a challenge.. As an entrepreneur, it's our capability to turn these Threats into an Opportunity. ANd I admire Grameen America that they have their own way to help people in this tough situation.Most people need money that's why they've thought of providing what people need- and that is lending money and helping people to have an income. Grameen America helps women to be more productive in this kind of situation. As women and an Entrepreneurship Students, we must be open to changes do something about it!And be inspired by Grameen America to help other people in our own special way... ^_^ Viva Entrep!
ReplyDelete