Center meetings and Interviews- Village

I could write different stories of each woman, but I think the best is to try to summarize it and giving some examples. For me, the most important characteristic that called my attention was the long-term relationship the borrowers have with the bank. Since my visit in the urban replication I was questioning myself why they keep loans for 10, 12 or even 19 years! Well, after talking to the members, I understood they are always re-investing the money in their small business (such as Saris, broom productions, pick up for transportation of several things vegetables, furniture, etc..). They also prefer to keep this loan relationship long, because they have good benefits. They keep a good amount of savings mainly in a product called GPS that works as a pension fund. They can also access student loans or scholarships for their children.   

For instance I interviewed one woman who I met in the ”New members approval meeting”. She was joining Grameen Bank to start a vegetable business, but the main reason for her was her desire to save money in order to guarantee the future of her three daughter’s education.

I also saw some differences between the rural area and the city. The sample group is small, but the center meeting I had participated in Dhaka, the women had fewer children than the one’s in the villages. Another difference is that in the village usually women borrow the money to their husband and sons to run the business; while in the city they usually run the business themselves and the husband works for other people or companies.

Even though the men run the business, the women are bringing ideas and participating in family decisions.  This is an important change comparing to some years ago.

When I asked them what be successful meant to them, they mentioned they have voice at home and now they are working for themselves, while before they were working for others.

One example is Jasmin. She had the idea and took the initiative to expand the family pickup business (transport of food, furniture or any other product). In the very beginning the family had one pickup but later with Grameen Bank loan, they bought 2 more pickups. She believes they couldn’t have achieved the same results without Grameen Bank. She also attributes their success to her hard working husband.  They have 3 employees and make at least 260.000 BDT per month. (2.600 euros) which is more than enough to pay the weekly installment of 10.000  BDT. The outstanding loan is 400.000 BDT and she has 250.000 BDT in savings with GB. She has been with Grameen for more than 9 years and is planning to increase the loan amount to expand even more the business.

I also interviewed people who left Grameen Bank for different reasons. One family had taken a loan for trade sari business but after 4 years he realized he didn’t need the loan anymore. Other family who is in the sari production business, left Grameen after the institution had denied a loan increase. He is working with another microcredit institution, even though he believes Grameen Bank is more reliable. The actual branch manager was not in the branch at that time and he told me this family can be a potential client for Grameen.  Finally, I talked to a family who couldn’t repay the debt. They had some poultry, which was affected by a disease, and they still have an outstanding debt with Grameen Bank. 

Borrower's house and grocery shop

Loan Disbursement at the branch

Center Meeting

Center leader signing loan proposal

Jasmin's great house

Field Trip- Village

I am back at Dhaka after spending 5 days in Sadipur Village (in Sonargoan town- historic administrative, commercial and maritime center in Bengal), approximately 100 km from Dhaka.

There I stayed in the branch office, where the Branch Manager Mahbub and his team received me very well. My accommodation was fine and the food was very good. The cooker, a very nice lady, was cooking fresh meals everyday for breakfast, lunch and dinner.

In the first night I got scared of very fat cockroaches that for my relief didn’t visit us again (at least in big groups) in the following days. I also had the mosquito net, which made me feel protected and were able to open the windows to sleep. Otherwise was too hot! (I tried to sleep with windows closed, but it was impossible, because for some minutes or hours the electricity can fail, then sleeping without fan with windows closed is really hard.)

Well, let me talk about the important and more interesting staff.

During my stay I participated in center meetings, visited the area office and made a lot of interviews with Grameen Bank members (borrowers).

I also visited a village, where people produce very beautiful saris. It is a traditional business that had been there for more than 200 years! The saris are sold to the retailers from 2.000 BDT up to 100.000 BDT (20 euros to 1.000 euros approximately)

In our last day on my way back, we picked up another group of students and visited Grameen Shakti (Energy) and visited Veolia water plant.

To clarify the organization structure, Grameen Bank has branch offices in the villages, but the goal is: the bank goes to the client, not the opposite. So under the branch office, there are centers. The centers are small houses, where the center manager (Gramenn Bank representative) organizes weekly meetings. In these meetings, they collect the installments; the members (or borrowers) make new loan proposals and train new members.

In addition, the branch offices report to one Area office, which reports to a Zonal office and then to the Head Office.

My room (actually much bigger than in the picture!)

Sari Production

Close to Veolia water plan

Branch Team

Our cooker

14th Yunus Centre Social Business Design Lab

Today I have been in the 14th Yunus Centre Social Business Design Lab moderated by Prof. Muhammad Yunus.  This event happens once a month, where several entrepreneurs can present their business plan. Representatives from Yunus Centre, Grameen Trust and other Grameen affiliates participate discussing about the business opportunities.  

After presentations, group meetings take place to discuss the business plan individually. I joined one of them and it was very interesting. The goal of the meeting is to understand better the idea, recommend or not the project to be approved or propose improvements in the business plan for a new presentation. 

Today 5 from 6 projects were approved to go ahead in the process of fund raising. Most of the projects are local business, such as pharmacy, accessories, handcrafts. Today there was also a foreigner team presenting.  The idea of this team is exporting unique Bangladeshi handcraft products to Europe and the USA, helping to develop tribal communities in rural Bangladesh. 

Besides the great opportunity of attending the Social Lab and understand how Yunus Social Business select the projects, we had the honour to meet Prof. Yunus.  A lot of people wanted to make pictures with him. He is very gentle and nice, responding everybody's requirements. 

Field Visit - Urban

Yesterday I had my first field visit to see how Grameen Bank replicates micro-finance in urban area. Since Grameen Bank is allowed to have micro finance operations only in the rural area, other MFIs (Microfinance institutions) replicate the methodology in the urban area with the help of Grameen Trust. 

I visited DSK, one of these MFIs. I had been first at the branch and later we went to the Center, which is in the house of one of the borrowers. The Center meeting is where usually women meet to pay the installments and make a new loan proposal. 

They shared with me good examples such one of ladies that had more than one successful business (computer and grocery store). Other one had a large outstanding loan comparing to the others because she had invested in a electric tools shop. 

Also I was happy to listen stories about improvement of independence of these women regarding family and making their own decisions, such as starting savings for their children and buying clothes without permission of their husbands.

Center Meeting

DSK Branch

New years in Bangladesh- April 14th

My third day in Bangladesh was the New Years celebration. I, Fede, Kumi, and Jihee from South Korea went to celebrate the day around Dhaka University, as  local people used to do. 

With the help of the hotel guy we were able to take a bus. We sit at the front seats as usually single women should do here. The trip took 1 hour and half.

We were not sure where to get off, but we met a lot of people willing to help us, even without speaking English. Three guys get off of the bus together and walked around with us. There was no parade or music but everybody looked happy dressed on red and white and using bugles to make noises.

Whenever we stop to rest, people asked us to make pictures and were curious to know about our original country.  

In our way back again some local students, speaking very good English, helped us getting a CNG (bigger and faster than rickshaw, need to put a picture) and also invited us to go to a restaurant with them. But we really wanted to go to the hotel and take a shower after spending 4 hours in a temperature of at least 30 degrees!

People on the streets for New Years Celebration