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May 15, 2006

Comments

fester

If my memory serves me correctly, Grameen Bank of Bangeldesh has been able to operate profitabily as a micro-lender for a good 20+ years now also. Also IIRC they are a for-profit organization at this point in their structure.

pwb

It's hard to tell but Grameen actually does not appear to be a for-profit institution.

I've had the same thought as John: why don't any of these micro-finance orgs operate as for-profits?

John Robb

Most seem to operate as a non-profits that require cash infusions to cover operating expenses. They get the same results in terms of repayment but they can't scale due to the negative costs. This guy worked on the automation necessary to make it profitable and he is attracting cash from banks all over India (including Citi).

phil jones

Anyone got a link or citation about the Grameen profitability thing?

Charles Cameron

Grameen Bank is a for-profit bank. Granmeen Telecom and Grameen Cybernet Ltd are for-profit companies. Grameen Fund is not-for-profit, as is Grameen Trust.

For a full listing, see:

http://www.gdrc.org/icm/grameen-institutions.html

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