THE GRAMEEN

BANK
HOUSING
LOAN
PROJECT
BANGLADESH
Micro Credit Housing System for the
Landless Rural Poor
CONTEXT

Bangladesh
•2nd poorest country in the world.
•85% (of 11 million population) live in
rural areas.
the house
•60% are landless.
•Per capita income in 2008 was USD520. vulnerable community
(compared to the world average of
•Agricultural labors
USD10,200)
•Farmers
•Health problems ranging from surface
•Small-scale
water contamination to arsenic
trading (informal)
contamination of ground water.
•Diseases including malaria,
the land
leptospirosis and dengue.
•Prone to natural disaster such as
cyclone, flood and cyclone.
GRAMEEN BANK HOUSING LOAN PROJECT

Purpose
Giving some of the poorest members
“poverty is unnecessary”
of the rural community the means
Muhammad Yunus, Director of Grameen Bank
and materials of improved housing.

Improved Health
Improved Security
Improved Well-being

Inception
1984
Numbers of Houses Built
59,000 in 13,000 various villages
Success Measure
Recovery rate is close to 100%
Aga Khan Award for Architecture 1989
Nobel Peace Prize 2006
GRAMEEN BANK HOUSING LOAN PROJECT

Housing Loan Program

Set up in 1976 to help combat poverty
and problems of the rural landless poor.

•Most often face the greatest difficulty

in surviving
•Typically live in small shelters with
minimum protection
•Vulnerable community and living
under the poverty line

Objective
Provide appropriate financial support and
coordination.
To help the poor and landless to find self-
employment without needing
government’s welfare or assistance.
LIVING CONDITION
FINANCIAL SUPPORT

Grameen Bank
Bangladesh
with support
from the
International
Fund for
Agricultural
Development
Rome

An experiment
based on the belief
that the rural
landless poor can
repay loans,
provided that the
terms and
conditions are
realistically within
their reach.
FINANCIAL SYSTEM

Grameen Bank

Loanee #1 Loanee #2 Loanee #3 Loanee #4 Loanee #5

Peer Group Pressure/

Loan/ Credit with Interest
Collective Responsibility

(One-year period repayment, (Weekly installment of 2%)

determined by borrower)

Group #1 Group #2 Group #3 Group #4 Group #5

Forming a Center

(Weekly group meeting: the bank goes to them)

NEW HOUSING CONCEPT

Roof Infill Structure

Made of corrugated Timber rafter, purlin
aluminum for and lintels- locally
permanency and easy available material and
assembly easy to work with

House’s Skin
RC Columns Bamboo - material
Secure attachment familiar to work with
for supporting and easy to transport
platforms for (using boat, cart,
valuables and roof rickshaw) - coated
with bitumen or paint

Main Structure House Base Land Ownership

In the case of serious Raised concrete or In the borrower’s
land erosion, may be mud base to avoid name and can be
lifted out to move the termite attack and bought with loan from
house protection from flood Grameen Bank
DRAWINGS
DEVELOPMENT PROCESS

1. Loan Giving

Training on Give loan Give loan to

Forming a Give loan to
Grameen’s Interview to other 2 last
group of 5 2 members
policies members remaining
person

Ineligibility of
group until
loan is repaid

2. Project Implementation

Mapping Construction Documents Prepare Structural Components

DEVELOPMENT PROCESS

Base Construction Erection of Main Frames Prepare Wall Panels

Completed Main Structure Prepare Latrines Completed House

PRODUCT AND PROJECT SIGNIFICANCE

The Housing Loan Program of

Grameen Bank made a significant
impact on the lives of its landless
borrowers in terms of restoring
confidence and human dignity.

They can now feel their existence

as human beings. With their new
land and home, they now feel a
strong sense of protection and
endeavor to build a decent life for
themselves.

The program is being seen as an

investment for good health and
well-being for humanity.
LESSON LEARNT

1. Investing some portion of capital, giving

loan to groups of poor people and choosing
appropriate interest rate are crucial for the
implementation of the program.
2. Housing has increased the capacity of the
beneficiaries thus increases the productive
capacity of the community.
3. Understanding of the behavioral aspect of
the community is very important to respond
to their needs.
4. Supports and helps must not be a fully-
funded charity but must be repaid. This is to
ensure progressive development for the
loanees.
5. Poverty must be combated with support, not
charity.
REFERENCES

1. Chandra, D., The Experience of Grameen Bank Housing Program,

Grameen Bank, Dhaka, 1999.

2. Hosseini, N., Breaking The Vicious Cycle of Poverty - Micro Lending,

16th MIT-UAlbany-WPI System Dynamics PhD Colloquium, University at
Albany, New York, 2008.

3. Frampton,K. (et al.), Modernity and Community: Architecture in the

Islamic World, Aga Khan Awards for Architecture, Thames & Hudson,
London, 2001.

4. Karyono, T.H., Seputar Permasalahan Arsitektur Kota Tropis Dunia

Ketiga, Penerbit CV Tehaka Arkita, Jakarta, 2005.

5. www.archnet.org

6. www.grameen-info.org

7. www.muhammadyunus.org