How Dr Muhammed Yunus’s Grameen Bank helped people come out of poverty

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With his visit in Chittagong University, he saw the hard life of people living in the area. He lent his own money to forty-two women in the village. So, he is credited with the microcredit idea alongside Dr. Akhtar Hameed Khan. In 1976 December, he finally secured a loan from the Janata Bank government to lend to the poor in Jobra. The organization continued to operate, securing loans from several banks for its projects. As time passed by, the foundation grew from having 28,000 members. On 1 October 1983, it became a full pledged bank named Grameen Bank for poor Bangladeshis. By July 2007, the Grameen Bank issued US$6.38 billion to over 7.4 million borrowers. For ensuring the repayment, the Grameen bank uses a system of solidarity groups. The small groups apply together for loans and others act as co-guarantors of repayment and support one another’s efforts for economic stability. Grameen’s microfinance model success inspired similar efforts in about one hundred developing countries and even in already developed countries.

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