The origin of Grameen can be traced back to 1976 when Professor Muhammad Yunus, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor. This program later developed into a financial institution that provided micro-finance for the small businesses. At present Grameen has replicated its model in 42 countries with more than 7 million borrowers.
Family Bank’s Grameen Program provides collateral free Islamic micro-credit to the needy families through door step services.
Grameen Program provides funds from BD500/- to BD3000/-. These funds are given based on the type of investment, business experience of member and number of investment funds taken in the past. All new members are allowed a limit from BD500/- to BD1500/- initially. Repayment period varies from 3 months to maximum 24 months. Once a member has repaid the investment fund initially taken then they are eligible to take the same amount or more, as Additional or second cycle funds, provided that they have paid their installments on time.
Grameen members are also obliged to open a saving account of BD10/- and encouraged to deposit minimum BD5/- every month with every installment. This method within the Grameen Program encourages members to save, manage funds wisely and depend on one self.
As a value added service, Family Bank provides free induction training (two days) to potential customers, through Ta’azeez Program, to enhance the standard of business awareness before financing the individual.