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Grameen Microcredit Program in Hainan Growing

The Hainan Microcredit Program in Grameen Bank Model (HMPGBM) which was launched in April 2008 under the joint collaboration between Grameen Trust and Hainan Rural Credit Union (HRCU) in the tropical Hainan Island has been growing despite many challenges.

HRCU decided to focus on microcredit following the Grameen model to reach out to the bottom poor in Hainan who were not served by the traditional banking establishments.


Center Meeting at HMPGBM

In January 2008, GT and HRCU jointly conducted a fact finding mission in Qiongzhong County to develop the methodologies of implementing the Grameen microcredit program there.

Qiongzhong's mountainous topography and sparse population density posed a challenge to developing a sustainable microcredit program to serve the local community who were not accommodated by any other commercial banks. The borrowers had to travel long distances to attend the center meetings. Up till December 2008, HMPGBM reached 104 borrowers in Qiongzhong county.

In December 2008, HMPGBM opened a second branch in the neighboring Tunchang county to provide microcredit services to more poor people in Hainan. The Inaugural ceremony in


Borrower Pass Book of HMPGBM
Tunchang county was adorned with the presence of high official members of Tunchang government, journalists, TV reporters and other VIPs of the Touchang county. The borrowers of the new branch utilize their micro-loans on animal husbandry, such as raising pigs, buffalos, and cows. As Tunchung county has a relatively flat topography compared to Qiongzhong county, the growth in membership in this county in a relatively short period of time was noticeable. During December 2008 the Tunchung branch disbursed loans to 100 women.

As Of December 31, 2008, the project has disbursed RMB 642,500 as micro-loans to its borrowers, all of whom are women. The project enjoys a 100% repayment rate.

Report by Evan Platt and Claire Ducry

Indonesia
Grameen Aceh Expands to Takengon
AN AGCP borrower at her store.

Grameen Trust set up Asociacion Aceh Grameen Credit Project (AGCP) which was launched in July 2006 in Aceh province of Indonesia expanded to a second branch in Takengon area in 2008. AGCP was set up to provide microcredit for income generating activities to the poorest women who were affected by the devastating Tsunami that had hit Aceh, Indonesia, in 2004.

The Grameen microcredit model has proven to be very popular in Aceh as a means for economic rejuvenation among those affected by the Tsunami. Based on a feasibility study conducted in August 2007, Grameen Trust expanded AGCP operations to a new branch in Takengon with support from the Whole Planet Foundation.

Up till December 31, 2008, AGCP had organized 1,189 member in 285 groups in 2 branches. AGCP has cumulatively disbursed a total of US$ 334,001 to 1,104 borrowers. All the borrowers of AGCP are women. The project enjoys a 100% repayment rate.

Report by Faruq Al Banna