 |
 |
|
 |
||
 |
 |
   |
 |
 |
|
 |
 |
 |
 |
||
 |
||
  |
||
     |
||
    |
||
 |
||
 |
Microbanking began in Bangladesh in 1976 with the Grameen Bank, which now operates successfully in many countries around the world. Microbanks lend small sums of money, often as little as $125, to people who possess skills and a sound business plan. Due to lack of collateral, these people are unable to secure loans through the traditional banking system. Micro-banks lend money to individual entrepreneurs in groups of five, each member being responsible for their own loan. All 5 members in the group must repay their loans before any one-individual can re-apply for the next level of funding. In this way they use each other as collateral for their loans. This proven method has boasted over a 95% success rate in repayment and flourishing businesses.
Microbanks | How it Works
|
 |
