A Grameen America borrower at her shop
Since its formal inauguration by Nobel Laureate Professor Muhammad Yunus in April 25, 2008, Grameen America (GA) has caught the imagination of many around the world. At the inauguration ceremony Professor Yunus called the first GA branch in Jackson Heights, New York City, the "Jobra of America" and told the borrowers that everyone in the US and around the world would follow their story to see how Grameen microcredit makes a positive impact in their lives.
Grameen America borrowers, most of whom were not served by traditional banks, utilize their microcredit ranging from US$ 500 - 3,000 to build and grow small businesses, such as, hair salons, clothing and accessory shops, day care services, tailoring services, food stores, pet grooming, house cleaning business, and even candy stores.
At the end of 2008, Grameen America had 500 members in 100 groups organized in 47 centers all around Queens, New York. GA had disbursed more than US$ 1.165 million in loans, of which US$ 570,746 had already been repaid. The project enjoys a 99.30% repayment rate. GA members have cumulatively saved $84,290 during this period.
Due to its uniqueness, Grameen America has already attracted major media coverage with leading newspapers such as the Wall Street Journal and the New York Times covering Grameen America's Jackson Heights operations and endorsing their services and good work. Television channels CNN, BBC, NBC, WNYC, and others around the world have featured stories on GA. The media coverage has generated strong enthusiasm towards the project and has been very motivating for the Grameen America Team to further increase its outreach.
Report by Tamim Islam
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ACRG borrowers at a fair displaying their handicrafts
In 2008 ACRG introduced a special type of seasonal loan for pig rearing. This new loan product provides microcredit to individual borrowers for six months. The borrower utilizes this loan to buy a pig and fatten it for sale during Christmas or other festival periods. The loans are disbursed during the month of June. The borrower pays only the interest and insurance on the loan in bi-weekly installments during the loan period. The borrower repays the principle in full with the last installment before Christmas in December.
ACRG has disbursed US$ 33,000 with the average loan size of US$ 60 under this new scheme. The borrowers have welcomed this loan as it has enabled them to earn additional income through the sale of pigs during festival seasons.
Till December 2008, ACRG has enrolled 6,562 members, of whom 6,281 were borrowers. ACRG has disbursed more than US$ 2.316 million in microcredit to its borrowers of which US$ 872,702 was outstanding. All the borrowers of ACRG are women and the project enjoys 100% repayment rate. ACRG has a plan to open one more branch in Cariari in 2009.
Report by Faruq Al Banna |
