|
The Grameen Bank is a microcredit organization that started in Bangladesh. Groups of five individuals are loaned money, but the whole group is denied further credit if one person defaults. This creates economic incentives for the group to act responsibly, increasing Grameen's economic viability.
Most loan recipients are women. Grameen's track record has been astonishing, with very high payback rates of over ninety percent.
The Bank was founded by Muhammad Yunus, a graduate in economics from Vanderbilt University.
External link
|
