GRAMEEN II: The First Five Years 2001-2005

This report presents findings from a long-term, field-based study of Grameen II, commissioned by MicroSave and carried out by Stuart Rutherford.

Grameen II represents a radical change from the earlier classic Grameen. The report describes:

• Growth of the bank after the launch of Grameen II in terms of number of clients, savings, loan portfolios, income and profitability;
• Main changes made by Grameen II in product development;
• Implementation of Grameeen II in the field, its overall impact and how these changes are likely to affect the bank's future;
• Operations of Grameen II, particularly the behaviour, attitudes and preferences of field- staff and clients;
• Ways in which Grameen II services mesh with other parts of its members rich and complex financial lives;
• Levels of member indebtedness, their view of Grameen IIs services, and the manner and reasons for joining or exiting Grameen II;
• User-friendliness of Grameen II products.

The report also examines how Grameen II will manage its growing portfolio of bigger microenterprise loans, maintain its poverty focus and face new challenges in fund management.