Financial services for the poor: The big save - Summify

TWO years ago Sabina sold flowers on the street from a shopping trolley. Today she has her own storefront in Queens, thanks to a $1,500 loan from Grameen America, a microfinance institution based on Grameen bank, which was founded by Muhammad Yunus in Bangladesh. Since opening its first American branch in January 2008, Grameen has found fertile ground. It has lent more than $25m to 7,300 borrowers. At 15%, interest rates are high, but far less than a loan shark or payday lender would charge (the annualised interest on a payday loan is typically 400%, sometimes twice that), and there are no other fees or collateral required. Grameen America’s repayment rate is around 99%. It now has branches in four of New York’s five boroughs, and plans to open in Washington, DC, North Carolina and California. It also has one in Omaha and Indianapolis.