Grameen America is a microfinance company whose mission is to help alleviate poverty through entrepreneurship by providing loans, savings programs, credit establishment, and other financial services to the working poor, especially women, in the United States. Grameen America is built upon the success of the Grameen Bank in Bangladesh. Founded by Professor Muhammad Yunus, the Grameen Bank is the most widely recognized microfinance company in the world. The success earned both Professor Yunus and the Grameen Bank the Nobel Peace Prize in 2006.
Grameen America has been created so that people with limited or no access to credit can use entrepreneurship and self-employment, proven means in the United Sates, for increasing wealth and escaping poverty. The poor are frequently prevented from pursuing entrepreneurship opportunities because mainstream banks will not make loans to people who lack minimum credit scores and collateral. These “unbanked” individuals typically have limited experience in understanding financial institutions, getting loans, building savings and managing credit. While conventional banks turn away these borrowers, the success of high-interest rate predatory lenders (often charging over 300-400% APR) such as payday loan corporations, pawnshops, and check cashers has shown that the unbanked constitute a highly valuable customer base.
Grameen America provides an alternative for these borrowers.
Grameen America provides banking for the unbanked.
Accessible Microfinance is Necessary in America
The need for accessible microfinance in America is great. Despite being the world’s richest country, around 28 million people in the US are unbanked and nearly 45 million have only limited access to financial institutions. The problem is exacerbated by the US credit rating system which excludes all those who lack collateral, education, references or a banking history. The US financial system excludes the poor, especially recent immigrants, because they do not have credit ratings and cannot obtain them because they cannot meet some or all of the credit rating requirements.
According to US Census figures, some 36 million people lived in poverty in the United States in 2005. Among these poor persons, 8.7 million were first-generation immigrants and their family members. At a macro level, 20.4 million of the nation’s 36 million poor are women and 13 million of these women are in what the US Census Bureau has accepted as “deep poverty”. Of that number, 9.8 million are single mothers who are by far the poorest group with 38 percent living below the poverty line. This compares to 11 percent of all Americans who live below the poverty threshold.
Grameen America Management
Grameen America is supervised by the most senior Grameen executives, including Professor Yunus and Professor H.I. Latifee, the head of Grameen Trust. Local implementation of Grameen America's microfinance business is being led by an experienced Grameen manager, Shah Newaz, from Bangladesh to ensure that Grameen practices are closely followed. Ritu Chattree serves as Vice President and heads up Finance and Development. Vidar Jorgensen, an American businessman who has been the principal proponent of Grameen America, serves as President
Grameen America has been created so that people with limited or no access to credit can use entrepreneurship and self-employment, proven means in the United Sates, for increasing wealth and escaping poverty. The poor are frequently prevented from pursuing entrepreneurship opportunities because mainstream banks will not make loans to people who lack minimum credit scores and collateral. These “unbanked” individuals typically have limited experience in understanding financial institutions, getting loans, building savings and managing credit. While conventional banks turn away these borrowers, the success of high-interest rate predatory lenders (often charging over 300-400% APR) such as payday loan corporations, pawnshops, and check cashers has shown that the unbanked constitute a highly valuable customer base.
Grameen America provides an alternative for these borrowers.
Grameen America provides banking for the unbanked.
Accessible Microfinance is Necessary in America
The need for accessible microfinance in America is great. Despite being the world’s richest country, around 28 million people in the US are unbanked and nearly 45 million have only limited access to financial institutions. The problem is exacerbated by the US credit rating system which excludes all those who lack collateral, education, references or a banking history. The US financial system excludes the poor, especially recent immigrants, because they do not have credit ratings and cannot obtain them because they cannot meet some or all of the credit rating requirements.
According to US Census figures, some 36 million people lived in poverty in the United States in 2005. Among these poor persons, 8.7 million were first-generation immigrants and their family members. At a macro level, 20.4 million of the nation’s 36 million poor are women and 13 million of these women are in what the US Census Bureau has accepted as “deep poverty”. Of that number, 9.8 million are single mothers who are by far the poorest group with 38 percent living below the poverty line. This compares to 11 percent of all Americans who live below the poverty threshold.
Grameen America Management
Grameen America is supervised by the most senior Grameen executives, including Professor Yunus and Professor H.I. Latifee, the head of Grameen Trust. Local implementation of Grameen America's microfinance business is being led by an experienced Grameen manager, Shah Newaz, from Bangladesh to ensure that Grameen practices are closely followed. Ritu Chattree serves as Vice President and heads up Finance and Development. Vidar Jorgensen, an American businessman who has been the principal proponent of Grameen America, serves as President
It was truly inspiring how Yunus idea, which appears to be impossible for some, will actually be a very successful and an ideal one. He turns impossibility to excellent reality. It’s amazing how his big heart, his very generous heart, changes the lives of so many poor people, particularly the women, and how he gives hope to them despite all the impossibilities this world has to offer. Muhammad Yunus is truly amazing!
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