6. Grameen Bank Methodology of Action

Grameen Bank action method is based on

1. Method of Actions Principals
2. 10 Indicators to Evaluate Poverty
3. 16 Decision to Get Rid of Poverty And Lead A Good Life

6.1. Method of Actions Principals
The Grameen Bank's Method of action can be illustrated by the following principles:

1. Start with the problem rather than the solution:
A credit system must be based on a survey of the social background rather than on a pre-established banking technique.

2. Adopt a progressive attitude:
Development is a long-term process which depends on the aspirations and commitment of the economic operators.

3. Make sure that the credit system serves the poor and not vice-versa:
Credit officers visit the villages, enabling them to get to know the borrowers.

4. Establish priorities for action vis-à-vis to the target population:
Serve the most poverty-stricken people needing investment resources, who have no access to credit.

5. At the beginning, restrict credit to income-generating production operations, freely selected by the borrower.
Make it possible for the borrower to be able to repay the loan.

6. Lean on solidarity groups:
Small informal groups consisting of co-opted members coming from the same background and trusting each other.

7. Associate savings with credit without it being necessarily a prerequisite.

8. Combine close monitoring of borrowers with procedures which are simple and standardized as possible.

9. Do everything possible to ensure the system's financial balance.

10. Invest in human resources:
Training leaders will provide them with real development ethics based on rigor, creativity, understanding and respect for the rural environment.

6.2. 10 Indicators to Evaluate Poverty Level
Every year GB staffs evaluate their work and check whether the socio-economic situation of GB members is improving. GB evaluates poverty level of the borrowers using ten indicators. A member is considered to have moved out of poverty if her family fulfills the following criteria:

- The family lives in a house worth at least Tk. 25,000 (twenty five thousand) or a house with a tin roof, and each member of the family is able to sleep on bed instead of on the floor.
- Family members drink pure water of tube-wells, boiled water or water purified by using alum, arsenic-free, purifying tablets or pitcher filters.
- All children in the family over six years of age are all going to school or finished primary school.
- Minimum weekly loan installment of the borrower is Tk. 200 or more.
- Family uses sanitary latrine.
- Family members have adequate clothing for every day use, warm clothing for winter, such as shawls, sweaters, blankets, etc, and mosquito-nets to protect themselves from mosquitoes.
- Family has sources of additional income, such as vegetable garden, fruit-bearing trees, etc, so that they are able to fall back on these sources of income when they need additional money.
- The borrower maintains an average annual balance of Tk. 5,000 in her savings accounts.
- Family experiences no difficulty in having three square meals a day throughout the year, i. e. no member of the family goes hungry any time of the year.
- Family can take care of the health. If any member of the family falls ill, family can afford to take all necessary steps to seek adequate healthcare.

6.3. The 16 Decisions of Grameen Bank
This 16 decision is to Grameen Bank member to take to fulfill in their life. This 16 decision are based on their daily life to get rid of the curse of social and economic constraints. To lead a good, healthy life is motto of Grameen Bank members. The 16 decisions are

1. We respect the four principles of the Grameen Bank - we are disciplined, united, courage and hard work - and we apply them to all our lives.
2. We wish to give our families good living standards
3. We will not live in delicate houses. We repair them and work to build new ones.
4. We cultivate vegetables the whole year round and sell the surplus.
5. During the season for planting, we pick out as many seedlings as possible.
6. We intend to have small families. We shall reduce our expenses to a minimum. We take care of our health.
7. We educate our children and see that they can earn enough money to finance their training.
8. We shall always keep our children and the environment clean.
9. We build latrines and use them.
10. We only drink water drawn from a well. If not, we boil the water or we use alum.
11. We will not accept a marriage dowry for our son and we do not give one to our daughter at her marriage. Our centre is against this practice.
12. We shall not inflict any injustice on anyone; neither shall we allow anyone to do so.
13. To increase our income, we make important investments in common. We shall collectively undertake bigger investments for higher incomes.
14. We are always ready to help each other. When someone is in difficulty, we all give a helping hand.
15. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline
16. We are introducing physical culture in all centers. We take part in all social events. We shall take part in all social activities collectively.