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Part - III

1. There is an exclusive focus on the poorest of the poor.
Exclusivity is ensured by: -
i. Establishing clearly the eligibility criteria for selection of targeted clientele and adopting practical measures to screen out those who do not meet them.
ii. In delivering credit, priority has been increasingly assigned to women.
iii. The delivery system is geared to meet the diverse socio-economic development and address the needs of the poor.

2. Borrowers are organized into small homogeneous groups.
This helps strengthen the Grameen clientele, so that they can acquire the capacity for planning and implementing micro level development decisions. The Centers are functionally linked to the Grameen Bank, whose field workers have to attend Center meetings every week.

3. Special loan conditionalities, which are particularly suitable for the poor.
These include: -
i. Very small loans given without any collateral.
ii. Loans repayable in weekly installments spread over a year.
iii. Eligibility for a subsequent loan depends upon repayment of first loan.
iv. Special safeguard through compulsory and voluntary savings to minimize the risks that the poor confront.
v. Transparency in all bank transactions most of which take place at center meetings.

4. Simultaneous undertaking of a social development agenda addressing basic needs of the clientele. Brings about social, political and economic consciousness among the rural folk.

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* Contributed by -
Swetha Narayanaswamy,
First Year M.B.A.,
ICFAI Business School, Mumbai.