Grameen America provides small loans, known as “microloans”, and other financial services to people with very low incomes, especially women, who are looking to start or grow their small businesses.
Grameen America was established because most banking services in the U.S. fail the 28 million people who do not have a bank account, positive credit rating, or collateral.
Grameen America delivers credit at reasonable interest rates as a direct alternative to moneylenders, payday institutions and pawnshops. These lenders usually loan money at excessively high interest rates, making it extremely difficult for entrepreneurs to turn their ideas into profitable businesses.
Now open in Queens, Grameen America is the first U.S. branch of the microcredit organization, Grameen Bank, established 30 years ago by Nobel Peace Prize winner Prof. Muhammad Yunus. With over 7.5 million borrowers, 97% of which are women, the Grameen Bank now stands at the forefront of microcredit.
Who qualifies for a loan?
Our loans are for people with very low incomes, primarily women, who have great business ideas but have difficulty accessing credit at reasonable rates.
You don’t need:
- current bank account
- credit history
- collateral
- guarantors
You do need to:
- Be in need
- Create or join a 5 member Group of like-minded individuals of the same economic status
- Be a permanent resident of the community
- Live close to your Group members
- Be the only member of your household applying for membership in the same Group (close relatives such as mother, sister or in-law are not allowed)
How are the loans used?
All our loans are used for income generating businesses. We provide loans for activities as varied as the imagination of our borrowers:
- A new sewing machine for a tailoring business
- Children’s toys for a day care program
- Silk fabric for a clothing business
- Hair and beauty products for a beauty salon
- Supplies to make wallets and purses
What is Unique about Grameen America?
Group Model
To provide support and to help our borrowers succeed in making timely repayments, all Grameen borrowers join a Group of 5 like-minded people. Their Center Manager meets them once a week at a time and place that is convenient for them. This is where they share information, get financial training and learn about opportunities in their community. Members feel a sense of solidarity with other Group members and comfort in the personal relationship they develop with the Grameen America staff.
Group Training
To ensure every borrower fully understands the Grameen America program, newly-formed Groups learn about the Grameen method of loan disbursement and savings from their Center Manager during a training course.
Membership
With membership focused on low-income women, borrowers can be sure that Grameen America will always work to help those with greatest need.
Loans
All borrowers begin with a Credit Establishment Loan (also called Basic Loan) of up to $3,000. Through consistent repayment, borrowers can develop a credit history and the opportunity to “graduate” from Grameen America to become eligible borrowers at many other financial institutions.
After successful repayment of their initial loans, borrowers may use the Basic Loan to borrow from Grameen America again and again with higher loan amounts each time, so that the borrowers may meet all of their credit needs.
Savings
People struggling to make ends meet often don't have enough savings when there is an emergency. Grameen America helps our clients build assets for the future. To make sure our clients have financial security and stability, all borrowers open a Personal Savings Account with $10 that they save during their initial five-day group training period. Each week, clients grow their savings by depositing a small, fixed amount into their account as part of Grameen America's weekly group meeting activities. Over time, borrowers build a strong savings cushion and are prepared to face life's ups and downs.
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