Grameen lending to start in Scotland
The Grameen micro-lending system is likely to be launched in Scotland early next year with the assistance of Tesco Bank and other major supporters.
Tesco Bank will provide half a million pounds of the loan capital for what will be Grameen's first venture in the UK, said a statement.
The supermarket bank will also offer savings facilities and business support for aspiring entrepreneurs who wish to start businesses in some of Scotland's most deprived communities.
The Grameen Scotland Foundation, a charitable body run by a board of trustees, will oversee the running of the Grameen-style lending in Scotland.
Borrowers will be represented on the foundation as they will also be stakeholders in the Grameen system, holding the chief executive officer accountable.
The foundation has already attracted significant backing from a range of sources, including the Scottish government, which has donated £100,000, and supporters such as businesswoman and philanthropist Ann Gloag, who has given £100,000.
In addition, the foundation is in advanced discussions with the European Investment Fund and is expected to exceed its initial funding target of £1 million in the first year of operation.
The Scottish Grameen collaboration was jointly announced by Grameen Bank founder Prof Muhammad Yunus, Tesco Bank Chief Executive Benny Higgins, Principal of Glasgow Caledonian University and Trustee of the Grameen Scotland Foundation Prof Pamela Gillies, and Chair of the Foundation Martin Cheyne at the university on October 25.
The initial Grameen pilot scheme will serve Glasgow, North Ayrshire, West Dunbartonshire and Inverclyde, four of the five most deprived communities in Scotland.
On the occasion, Prof Yunus said, “I'm not saying change all business--I say give people an option. Poor people need to be given the right opportunities to be able to succeed in their own lives, and this is what Grameen helps them to do."
"We must encourage people to envision their own futures and once that is done find out how to get there. Once a person has a vision, it can be made real, and this is what the Grameen Scotland Foundation will work to achieve.”
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