Is Grameen Bank Different from Conventional Banks?

According to Professor Muhammad Yunus, the Grameen Bank methodology is almost the reverse of the conventional banking methodology. He said that Conventional banking is just based on the principle that the more you have, the more you can get. In other words, if you have little or nothing, you get nothing. As a result, more than half the population of the world is deprived of the financial services of the conventional banks.

Conventional banking is based on collateral while Grameen system is collateral-free.

Grameen Bank starts with the belief that credit should be accepted as a human right, and builds a system where one who does not possess anything gets the highest priority in getting a loan. Grameen methodology is not based on assessing the material possession of a person, it is based on the potential of a person. Grameen believes that all human beings, including the poorest, are endowed with endless potential.Conventional banks look at what has already been acquired by a person. Grameen looks at the potential that is waiting to be unleashed in a person.