Avijit Bajpai

After years of efforts to eradicate poverty in the third world economies, the Grameen bank has finally come up with certain helpful policies for the poor and needy section of the economy. The whole and sole aim of Grameen bank is to provide easy finance to the peasants and other weaker sections of the economy. These money lending organizations offered a helping hand in financing their small business set ups and assist them in securing their survival in the competitive economy. The set-up of these easy term money lending institutes, are being imitated by many other economies as well. It has recorded tremendous success and has made people to pluck out their selves from poverty and dearth.

The set up of such micro credit-organizations are playing a prominent role in developing the weaker and backward sections of the society. These set ups act as an uncomplicated lender for women and have recorded a funding of 30,000 women to purchase mobile phones. This system needs a proper governmental framework to establish and grow as financial banks, and offer various benefits to the deprived section of the economy. It has encouraged children education by enforcing its sixteen decisions program. The easy term lending does not abide the borrower in any time period to make a repayment which is one of the most remarkable positives delivered by these institutes. The system works on the basis of trust and there is no legal instrument attached to it. It imbibes a high pay back track record that is realized at 98 percent.

Grameen Bank is an honorable receiver of Nobel peace prize and is expected to deliver great results if infused in a proper government set up and social framework. In spite of having a long list of positives attached to it also features some negatives. It is believed and is stated by a number of analysts that this organization binds its borrowers to follow the rules and regulations set forth under the Sixteen decisions program. Further, it is accused of charging a higher rate of interest as compared to rates charged by traditional banks.