Grameen Rules for Receiving Loans

 
Muhammad Yunus, when forming the Grameen foundation, sat down with his colleges and created a list of criteria they believe should be met by all Grameen borrowers. These rules represent a commitment as a Grameen borrower to improving their living standards. Rules range from not living in a dilapidated house and growing vegetables year round to a promise of helping others in difficulty and maintaining discipline, hard work, unity and courage in all aspects of life. (Yunus, 135-6). These rules demonstrate what the Grameen foundation believes are necessary actions in relieving poverty from a community. If these rules could be applied to other poor areas and accomplished, a significant improvement would be made in the living standard of these people.

formula for repayemnt:

- loans last one year

-installments are paid weekly

-repayment starts one week after the loan

-the interest rate is 20%

-repayment amounts to 2% of the loan amount per week for 50 weeks

-interest payments amount to 2 taka per week for every 1,000 taka of the loan amount