Impressed by micro-finance system of Grameen Bank started in Bangladesh, Maharashtra Government is planning to implement a similar model in the state.

Rural Development Minister Jayant Patil, who visited Bangladesh recently, reviewed the functioning of the Grameen Bank and wants to start the system in rural areas.

“The work of Grameen Bank is extremely well and if implemented in the state, would help to finance women and self—help groups,” Mr. Patil told PTI.

The existing finance schemes here do not reach women or self—help groups. Many times, they are denied credit.

However, Bangladesh tries to reach to the lowest strata of women and gives them credit, Mr. Patil said.

“The process of financing loan is very simple and does not include any paper work. The loan amount is directly given to the women,” the minister said.

Despite the easy processing of loan, the recovery rate is 99 per cent through Grameen Bank and the women get money on time without any delay, he said.

About five to six women make a group and approach the coordinator of the bank. Verifying loan details and its requirement, the coordinator requests the branch manager and gets the loan sanctioned, Mr. Patil said.

However, the financing schemes in Bangladesh are very small, Mr. Patil said, adding, the State Government may need to modify the system before implementing it here.

Mr. Patil has also convened a meeting with state banks on the issue to understand problems in financing women and self-help groups.

Grameen Bank was started by economics professor, Muhammad Yunus, in 1976 to make available a credit delivery system for the poor, especially women, in Bangladesh. Mr. Yunus received the Nobel Prize in 2006 for his work.