Correct Option
The correct option is 1 and 3 only.
Explanation
The Grameen Bank is a pioneering microfinance organization and community development bank founded by Nobel Laureate Muhammad Yunus. It is globally recognized for introducing the concept of microcredit-providing small loans to the impoverished to promote financial inclusion and self-employment.
Statement-wise Analysis
- Statement 1 is Correct: The Grameen Bank operates in Bangladesh. It originated as a research project in 1976 and was established as an independent bank by government legislation in 1983.
- Statement 2 is Incorrect: The bank was established specifically to counter the exploitation of the poor by traditional moneylenders who charged exorbitant interest rates. Grameen Bank charges moderate, regulated interest rates intended to cover operational costs and ensure sustainability, rather than to generate excessive profit.
- Statement 3 is Correct: A core principle of the Grameen Bank is lending without collateral. Recognizing that the poor lack physical assets, the bank utilizes a system of "social collateral" through solidarity groups (Joint Liability Groups), where peer pressure and mutual trust ensure repayment.
Key Takeaway:
The Grameen Bank model revolutionized banking for the poor by replacing physical collateral with social collateral (trust and group liability), serving as the blueprint for Self-Help Group (SHG) movements globally.