Grameen Bank originated in 1976, in the work of Professor Muhammad Yunus at University of Chittagong, who launched a research project to study how to design a credit delivery system to provide banking services to the rural poor. In October 1983 the Grameen Bank was authorised by national legislation to operate as an independent bank. In 1998 the Bank’s “Low-cost Housing Program” won i got bank pdf World Habitat Award.
In 2006, the bank and its founder, Muhammad Yunus, were jointly awarded the Nobel Peace Prize. 27 to a group of 42 families as start-up money so that they could make items for sale, without the burdens of high interest under predatory lending.
Yunus believed that making such loans available to a larger population could stimulate businesses and reduce the widespread rural poverty in Bangladesh. Yunus developed the principles of the Grameen Bank from his research and experience.
Grameen Bank is Bengali for “Rural” or “Village” Bank. He began to expand microcredit as a research project together with the Rural Economics Project at Bangladesh’s University of Chittagong to test his method for providing credit and banking services to the rural poor. In 1976, the village of Jobra and other villages near the University of Chittagong became the first areas eligible for service from Grameen Bank. The bank’s success continued and its services were extended to other districts of Bangladesh.
By a Bangladeshi government ordinance on 2 October 1983, the project was authorised and established as an independent bank. The bank’s repayment rate suffered from the economic disruption following the 1998 flood in Bangladesh, but it recovered in the subsequent years. By the beginning of 2005, the bank had loaned over USD 4. 7 billion and by the end of 2008, USD 7.