Question

What do you predict is the effect of Grameen Bank’s lending on a community?

Short answer

The income of the community members will increase.

Step-by-step solution

Impact of Grameen Bank’s lending on a community

Generally, these communities find it difficult to get financial support from traditional financing institutions of financial risk associated with them (because there have low savings or they fail to provide any collateral). If a person from the community wants to expand his small business, he will fail to get any financial support from these institutions.

Grameen Bank lends money to these members of the small income community. The members can use the borrowed money to initiate small businesses or expand existing businesses. Hence, the income of the members will increase.

Thus, the lending by Grameen Bank will increase the income of the community members.