Micro-Leasing, The Grameen Bank Experience

Topic :

This paper critically examines the Grameen Bank leasing program but is not a full impact assessment. The paper is divided into the following sections:

  • An introduction and review of the financial landscape of leasing;
  • A description of the operational aspects of the leasing programat Grameen Bank;
  • A case study of one borrower’s experience with the Grameen leasing program;
  • An evaluation of the leasing program and its successes and failures;
  • Recommendations of new products and practices that will improve the efficacy of the leasing program.


Analysis of program level data and a case study show that the program is successful in terms of outreach and repayment performance. Key conclusions are:

  • Poor people have diverse credit needs.
  • Different and flexible products are needed to help poor people graduate out of poverty.
  • It is possible to issue medium term loans without large down payment to small borrowers.
  • Good institutional set-up and a carefully designed product is needed for members to use the product to their advantage.
  • Despite the success of the group lending methodology of credit delivery, members within a group have different entrepreneurial ability. New products such as leasing can be used to reward a good member within a group.
  • The key to success is constant supervision, monitoring and knowing one’s clients well.
  • Resource type
  • Author Dowla, A.U.
  • Year of Publication1998
  • Region
  • LanguageEnglish

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