GRAMEEN in the UK Set up, mission and future development Background

Slides:



Advertisements
Similar presentations
COMMONWEALTH YOUTH PROGRAMME AFRICA CENTRE COMMONWEALTH SECRETARIAT Youth Enterprise Development and Youth Employment Experiences and Lessons from Commonwealth.
Advertisements

Credit Unions Prioritising Social Gain (an approach to Micro Credit) Presentation to Open Days 2007 on Micro Credit 10 th October 2007 Liam ODwyer, CEO.
Micro Credit in South Africa. What is Micro-Credit? Micro credit or micro finance is the extension of small loans to entrepreneurs too poor to qualify.
INTERGRATED RISK MGT ABDUL KYANIKA NSIBAMBI CENTENARY BANK UGANDA 2 nd April 2009.
Depository Institutions
Niamh Shortt and Heather Barry Irish League of Credit Unions International Development Foundation.
1 NAME :- HARSHIT DOSI ROLL NO. : FROM:- IICE COLLEGE, UDAIPUR ( RAJ )
AMANAH IKHTIAR MALAYSIA
DWP and Financial Inclusion An Update Lindsay Watt.
2 1. Client protection principles 2. Principle #1 in practice 3. Causes and effects of over-indebtedness 4. Participant feedback 5. Practitioner lessons.
1/16 LECTURE INTRODUCTION TO MICROFINANCE May 6th, 2009 Emilie Levy, Executive Director.
1. Is a challenging task Requires a great amount of work and time Involves numerous steps, which include*: 2 – write a business plan – obtain business.
Definition 1.Microfinance is providing small loans and savings services at the doorsteps of those people who have been deprived of financial services from.
Microfinance – Get Into Business Innovative Access to Financial Services for low income entrepreneurs.
Money Talk: Microfinance for Microenterprises
Microfinancing Presented by: Myasnik Poghosyan Ramiel Betnisan Kari Roth.
Presentation by: Maria Kristina S. Galvez Project Manager – Social Enterprise Unit Punla sa Tao Foundation.
NAMIBIA YOUTH CREDIT SCHEME (NYCS) Empowering the Youth, Securing the Future Programme Document : NYSC Programme Secretariat Ministry of Youth.
“Scaling up Poverty Reduction” Commercial Microfinance in Egypt The case study of the National Bank for Development National Bank for Development By: Mrs.
LOCO DAY 1. Loan Officer Job Description Application process (1-2 weeks) -analyze application -check reference and do background checks -compile list.
Microfinance its revenue models
What is microfinance?.
MICROENTERPRISE ACCESS TO BANKING SERVICES
Financial Literacy: How do clients understand their loans? Do clients benefit from business training? Minakshi Ramji Centre for Micro Finance – IFMR CAB-CMF.
 What are advantages of credit  What are disadvantages of credit.
1 ROLE OF BANKS in NRLM BACKGROUND Positive experience in lending to women’s self help groups by Banks. Expertise of banks in Training & Skill.
Kieran Fegan Dundalk Institute of Technology The Special EU Programmes Body is the Managing Authority for the European Union’s INTERREG IVA Programme.
Financial law as a branch of law Financial law - a set of legal rules governing social relations that arise in the process of formation, distribution and.
CALA Social Capital introduces ACT-CALA Microfinance Company Limited Grassroots networks and innovative technology delivering accessible and affordable.
Microbusiness and risk Lecturer: Tariyel İsmayilov(HM) Е-mail: Access Bank
Micro Credit.
Access to Finance in Agriculture Presented on : Hawasa Finance Fair Hawasa University,College of Agriculture March,
United Nations Development Programme in Kazakhstan BUILDING SUSTAINABLE MICROFINANCE INSTITUTIONS UNDP Kazakhstan 9 November, 2005 Two cases from UNDP.
Section 5.1 Financial Services and Institutions
1 Introduction to Financial Intermediation. Session Objectives At the end of the session, the trainees are expected to be able to: 1.Describe the financial.
Micro credit -Dissatisfied donors -Market failure -Win-win situation -Incentives to work.
WELCOME TO BRAC ENTERPRISE PROJECT. Rural Economic and Enterprise Development Programme.
Microfinance, a tool for the active inclusion of people excluded from the labour market A new microfinance facility to tackle the crisis Antoine SAINT-DENIS,
Transforming Public Sector Banks National Microfinance Bank.
Outreach & Sustainability of CARD-Rural Bank, a Grameen Innovator in the Philippines.
Microcredit CGW4U. What is Microcredit? Very small loans made to impoverished borrowers who lack collateral Women in particular benefit from microcredit.
Microfinance in Brazil a commercial bank view Global Conference on Access to Finance World Bank Headquarters, Washington, DC May 30-31, 2006.
Date - Lieu Introductory Presentation GRET-Chin MFI.
© INCEIF © INCEIF A Study of the Relationship between Religion and Development: Evidence from the Microfinance Industry of Bangladesh. 6 November,
PRODUCT DEVELOPMENT - LOANS MABS PROJECT February 21, 2000.
Diversified Revenue + Funding Strategies presented by
Funded by the European Union
Social Enterprise – What does it mean for you ?
LEARNING ROUTE   Development and Modernization of Rural Micro-Financial Institutions in Cambodia and Vietnam 19 to 23 June, Cambodia.
Business Studies SACE Stage One
RPES Project Support Meeting
Ministry of Finance Contribution of the Operational Programmes to the implementation of the NSRF objectives Boriana Pencheva Director Management.
PRESENTATION TO PORTFOLIO COMMITTEE SITEMBELE MASE : CEO samaf
1.2 Understanding different business forms
Facts on women’s entrepreneurship in Sweden
welcome in this presentation
Improving poverty outreach through buy-in and operational change
VARIOUS ISLAMIC MICROFINANCE MODELS AND ITS EFFECTIVENESS ON POVERTY ALLEVIATION.
Child Poverty (Scotland) Act
ACE’s Mission The mission of Access to Capital for Entrepreneurs, Inc. (ACE) is to provide community economic development to underserved people and community.
Depository Institutions
SCOTCASH WORKSHOP Co-location and partnership working
Read to Learn Discuss the functions and characteristics of money. Discuss three main functions of a bank.
Depository Institutions
Jake Atkinson Chief Officer, LRALC
Community Finance Ireland - A Community Investor’s Perspective on
toward a Brighter Future
Making it Work for the Bottom of the Pyramid
THE AFFORDABLE CREDIT CHALLENGE – THE PROBLEM SPACE
The Consultative Group To Assist the Poorest
Presentation transcript:

GRAMEEN in the UK Set up, mission and future development Background The Grameen Bank in Bangladesh is the institution that pioneered ‘microcredit’ for the poor, beginning as an action research project in 1976. It has now become the world’s largest bank that caters exclusively to the financial needs for the financially disadvantaged around the world. To date they have disbursed over US$11.35 billion in small loans for self-employment to 8 million people, mostly women. The Grameen Bank approach uses a well-designed and widely tested methodology of peer group borrower groups which has been successfully replicated in more than 40 countries around the world. At the invitation of the Glasgow Caledonian University in December 2009, the Grameen Bank conducted a Fact Finding Mission within the city of Glasgow where there was identified a great opportunity for a microcredit programme due to the high rates of unemployment and deprivation statistics, as published by the Scottish Government. There are communities where individuals have very limited access to financial services, partly because the current financial institutions that provide credit require to undertake background credit checks and/or seek collateral under terms of their lending criteria. Based on the understood areas of priority need - as identified by Government unemployment and poverty statistics - Grameen in the UK will initially support clients within the Glasgow City boundaries thereafter moving out to West Dunbartonshire, North Ayrshire and Inverclyde regional authorities once staff resources to facilitate future demand are in place. Whilst the primary objective is to support at least 1,500 households within these areas in the next 3 to 4 years, the longer-term objective will be to create and operate a sustainable microcredit program that reaches increasing numbers of families from a network of branches located across the UK. Whilst necessary adaptation will be made as required for the UK market, the programme will be implemented in accordance with the essential values and principles of the Grameen Bank approach.

GRAMEEN in the UK Grameen methodology The credit delivery and recovery mechanism of Grameen Bank forms the core of Grameen methodology used in the UK; • Focus on the most disadvantaged communities with greatest need. • Borrowers ‘self select’ themselves into groups of 5, each running / planning to run their own separate businesses. • No financial background checks or collateral required. Decisions based on mutual trust. • Each group attends a maximum 5 day - 2 hours per day - ‘advice and training’ course to ensure all have awareness of Grameen process, how to run a business, operate a bank account, budget, etc. All services are provided to clients within their communities at a location and time of their choosing. The borrowers choose their investment activity on their own , with peer group support if required. All loan transactions are conducted openly within the groups – from approval through to collection. • Different levels of loans are available for future business growth – up to £1000 initially then £2500 in year 2, £5000 in year 3. Approval for future loans is dependant on overall group meeting attendance (greater than 85% expected) and group members repayment record. • Repayments are broken into weekly instalments to make it easier for the member ( up to 4 weeks payment holidays allowed, one weeks notice required). • Integration of a savings program through Tesco Bank for future financial security.

GRAMEEN in the UK Loan products available Charges The successful repayment of the First Tier Loan is required to gain access to additional and higher amount of loans for most borrowers; First Tier Loans The First Tier Loan is the basic loan offered to all new members. The loan sum will range up to a maximum of £1000 with repayment over a maximum of 52 weeks. Second, Third Tier Loans & Subsequent Loans Second Tier Loans of up to £2500 and Third of up to £5000 may be offered dependant on attendance at Group meetings and repayment history. The loan terms will again be up to 52 weeks with flexible terms available at the discretion of the Lending Officers. Further loans may be made available thereafter at the discretion of our Lending Officers. Special Loans There may be opportunities for seasonal income generating activities in various localities in Scotland. Based on the client demand the CEO may choose to introduce Special Loans that offer the clients of Grameen the opportunity to take advantage of these seasonal activities for additional income generation. Micro Enterprise Loans Grameen in the UK retains the right to provide additional loans to assist in the further development of any existing businesses. Charges As a non profit charitable foundation future financial sustainability is key to ensure long term viability of the programme. Whilst no administration charges are applicable for any services provided, an appropriate interest rate is applicable from 17.95% to 23.95% on a reducing balance basis ( APR 19.5% to 26.8%)). For illustrative purposes - an initial loan of £1000 over a 52 week period equates to an overall interest payment of £119.39.