Since its inception, the bank has distributed Tk 684.13 billion (USD 11.35 billion) inloans out of which Tk 610.81 billion (USD 10.11 billion) has been repaid. The bankclaims a loan recovery rate of 96.67%, up from the 95% recovery rate claimed in1998. David Roodman has critiqued the accounting practices that Grameen used todetermine this rate.There is an estimated demand of 1 billion micro-borrowers globally, with a total loandemand of $250 billion. The present microfinance model is serving 100 millionpeople with $25 billion of loans. The Grameen Bank is 95% owned by the local poorand 5% by the government.
What is microfianance?
The word "microcredit" did not exist before the seventies. Now it has become abuzz-word among the development practitioners. In the process, the word has beenimputed to mean everything to everybody. No one now gets shocked if somebodyuses the term "microcredit" to mean agricultural credit, or rural credit, orcooperative credit, or consumer credit, credit from the savings and loan associations,or from credit unions, or from money lenders. When someone claims microcredithas a thousand year history, or a hundred year history, nobody finds it as an excitingpiece of historical information.
Sometimes called “banking for the poor,” microfinance is an amazingly simple
approach that has been proven to empower very poor people around the world topull themselves out of poverty.
What is the difference between microcredit & microfinance?
Microcredit refers specifically to loans and the credit needs of clients, whilemicrofinance covers a broader range of financial services that create a wider rangeof opportunities for success. Examples of these additional financial services includesavings, insurance, housing loans and remittance transfers. The local MFI might alsooffer microfinance plus activities such as entrepreneurial and life skills training, andadvice on topics such as health and nutrition, sanitation, improving living conditions,and the importance of educating children.