login    register    help     

 
About Us
 
Ash Center
 
Webinars
 
Innovation Awards
 
Innovators Insights Newsletter
 
Multimedia
 
Groups
 
 
All Topics
 
Criminal Justice and Public Safety
 
Economic and Community Development
 
Education and Training
 
Environment & Natural Resources
 
Finance
  Banking
  Government Finance
  Microfinance
 
Governance and Politics
 
Health and Social Services
 
Organizational Management
 
Public Infrastructure
 
Technology
 
 
All Themes
 
*Access to Services & Social Justice
 
*Accountability
 
*Collaboration
 
*Education
 
*Environment
 
*Government Performance & Management
 
*Government, Civil Society, & Private Sector Partnerships
 
*Health
 
*Justice & Security
 
*Participation
 
*Pluralism, Diversity, Gender, & Inequality
 
*Social Services
 
*Sustainable Development
 
*Technology
 

Financial services for the poor: The big save

The Economist: United States
September 24, 2011
PAGE TOOLS
   
RELATED TOPICS
   
RATE THIS
 
I hate it   I love it
     
1

2

3

4

5
     
 
DIGG THIS
 
 

TWO years ago Sabina sold flowers on the street from a shopping trolley. Today she has her own storefront in Queens, thanks to a $1,500 loan from Grameen America, a microfinance institution based on Grameen bank, which was founded by Muhammad Yunus in Bangladesh. Since opening its first American branch in January 2008, Grameen has found fertile ground. It has lent more than $25m to 7,300 borrowers. At 15%, interest rates are high, but far less than a loan shark or payday lender would charge (the annualised interest on a payday loan is typically 400%, sometimes twice that), and there are no other fees or collateral required. Grameen America’s repayment rate is around 99%. It now has branches in four of New York’s five boroughs, and plans to open in Washington, DC, North Carolina and California. It also has one in Omaha and Indianapolis.Also expanding in California is Self-Help, a North Carolina-based institution that develops property for affordable housing and small businesses, makes mortgage loans to low-income and low-wealth customers and operates a network of credit unions. Its mission is to help poor people buy houses; its founder, Martin Eakes, believes that “most families enter the middle class by becoming homeowners”. A similar institution in Massachusetts, Boston Community Capital (BCC), aims not to get poor Bostonians into homes but to keep them there: BCC buys...



Visit source to read full article

   

© 2014 by Harvard University Kennedy School of Government. All Rights Reserved.
About Us | Privacy Policy | Partners | Contact Us | Provide Feedback | Advanced Search
 

ksg Version:   Host: ip-10-83-51-59  C3_DB=c3@localhost:3306; GEO_DB=plex-sandbox@localhost; KPLEX_DB=ksg@localhost:3306; SESSION_DB=session@localhost:3306;