Grameen America uses the Grameen group lending and savings model that has been developed and refined over thirty years by the Grameen Bank. The basis of the system is a peer group model in which borrowers encourage, support, and learn from each other.

The group model requires prospective borrowers to form or join 5-member “Groups.”  Groups are then organized into Centers that have up to 8 Groups. Center meetings take place on a weekly basis and are facilitated by Center Managers who are employed by Grameen. The Group meetings and Grameen’s lending standards promote successful repayment and also provide a valuable forum for best-practice sharing and training on financial issues such as credit scores, savings, and related needs like health and insurance.

The Grameen model also incorporates required savings into all loan relationships so that borrowers build financial resources for the future. Savings are required in several ways and are promoted throughout the borrower relationship because Grameen believes that savings are an essential ingredient to the future financial stability of our borrowers.