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.
Grameen will provide collateral free Islamic micro-credit to the needy families through door step services. Borrowers are placed in homogenous groups of five from the same area but not from the same family with one member elected as a Group Chairperson and another as the group secretary. They are formed in groups for many social purposes, mainly to encourage group cooperation, enhance leadership skills, and provide support as well as peer pressure for installment payment.
Group formation takes place within the same living area of the group members, either within a social center, a member home or the social club. Group members need to be from the same gender and they should share the same ideology.
These groups are always assessed in terms of their available assets, existing business and type of skills that they posses. All Members are required to submit a business profile within a specific format for their existing or new investments. Regular visits will also be conducted by Family Bank Staff to the members business for verification and checking of investment utilization.
The group members will also go through group training for a period of minimum 3 days prior to receiving the investment fund. The training consists of the objective of the Grameen Program, the duties of the group members, the main conditions of forming a group and the best possible uses of the investment fund.
Groups members are also obliged to open a saving account of BD10/- and 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.
- Age group from 21 years to 60 years
- Bahraini National
- Eligible to Receive government aid / assistance
- Physically and mentally able to run a business
- Has not taken a loan above BD10,000