“Flavours” of Microfinance
•Grameen
Model: Pioneered by Grameen
Bank in Bangladesh in the
late 1970s, now extends world-wide through grameen replicators.
•Village
Banking: Developed by John
Hatch in Latin America in the mid-80s, focus is on forming independent village banks.
•Self-Help
Groups (SHGs): Savings-led
approach pioneered by Myrada
and PRADAN in India in the mid-80s.
Similar to Village Banking, focus is on developing community-run Self-Help
Groups.
•ASCAs,
ROSCAs, small Credit Unions, etc.: Similar groups have been operating formally and informally around
the world for hundreds
of years.
•Individual
Lending: Single client
method (with or without collateral), suitable for larger loan amounts and more
affluent clients. Currently in Eastern Europe and Latin
America.
