The key features of this program are very unique and bypass the rules and regulations that apply to the regular Grameen Bank members. The struggling members are not required to form any group. They, however, may be affiliated with a regular group. They are not obliged to attend any weekly meetings either. The regular group members, who act as role models for the struggling members, provide guidance and support to their less fortunate peers. The bank treats its struggling members with the same respect and attention that is provided to its regular members and also refrains from using the term ‘beggar’ as the term is socially demeaning.

The typical loan to a beggar amounts to Tk. 500 (US$ 9.0) and is not only collateral free, but there is no interest charged on it. The repayment schedule is flexible, decided by the struggling member. The instalments are to be paid at the member’s convenience and according to her earning capabilities. There is no stipulation that the instalments should be paid at a regular interval such as, a week, and the bank stresses that the instalment should not be paid from any money earned from begging.

Along with the initial loans, the struggling members are given identity badges with the bank’s logo as physical evidence of the bank’s complete support behind them. In some cases, Grameen Bank makes necessary arrangements with local shops to give the members a credit line upto a given amount to pick-up whatever items they choose to take out to sell in the village. The bank provides guarantee to the concerned shops that it will make payments in case of defaults. The struggling members sell light items such as bread, candy, pickles, toys, betel-leaf, matches etc, in order to supplement their begging.

Bank's rule for compulsory savings does not apply to the struggling members. But they are free to make savings deposits as and when they wish. Struggling members are automatically covered by the loan insurance scheme under which their loans will be fully repaid by Grameen Bank in case of death. In addition, Tk. 500 will be provided from the bank’s Emergency Fund to the bereaved family for meeting burial expenses.

To the further support struggling members, the bank provides the members with blankets, woollen shawls, mosquito nets and umbrellas on credit to be repaid as interest free loans. Although there is no compulsion for the struggling members to give up begging, there are many cases when they actually give up begging and move on to become regular business person.

Promeela Rani returns home after a busy day selling her wares

Promeela Rani is one such member who gave up begging as a result of Grameen's program. Promeela passed her early life comfortably with her husband and three children. Her husband left her, however, and her financial situation took a downward turn. Her sons too moved out and started their own families leaving her with the burden of having to pay a large dowry for her daughter's marriage. She started working as a maid in various homes but old age soon prevented her from working and she had to resort to begging. One day, when he saw her begging, the manager of Grameen Bank's Bhaluka branch in Mymensingh, approached her to become a candidate of the Struggling Member Program. She was given a loan of Tk 500 and the manager made arrangements with a local shop to provide her with light goods such as biscuits, candies and other items to sell. With the profits she made, Promeela managed to make repayments of Tk 20 per week and soon she quit begging. She took two subsequent loans to add variety to her business. All throughout her transition, the GB branch manager helped to keep track of her business as well as her health and personal well being. Promeela has already paid off her first loan.

Mokhlesur receives items for sale on credit from a local store

Till July 2004, 69 struggling members have made this giant leap out of begging and into regular membership of Grameen Bank.

The Struggling Members Program is targeted primarily at women, but also has male members. “I do not beg any more; I sell things; I earn money by selling goods”, proclaimed a proud Mohammad Mokhlesur, member of Grameen Bank’s Charruhita Lakshmipur branch Struggling Members, Program who lost his sight when he was very young. Like thousands of Bangladeshis, his poverty along with his handicap compelled him to choose begging as a profession. His luck changed as a Grameen branch manager approached him to join Grameen Bank’s new program for the ultra poor. The Bank manager helps him to buy goods to sell. These are mostly food items such as pickles, candies and toys. He buys these articles on credit with a guarantee backed by Grameen Bank. Mokhlesur now sells his goods in the surrounding villages and with the profit he makes from his micro business, he not only manages to pay back his loan instalments, but has also bought a saree for his wife and paid for their medical treatment. Mokhlesur’s children attend the local school, a privilege that he himself did not have and he now dreams of buying a wheel-cart from which he can carry on his business. Mokhlesur is not looked down upon anymore. He now senses dignity and respect.

As of July 2004, Tk. 7.19 million has been disbursed to 14,500 struggling members, of which Tk. 1.91 million has been repaid. Grameen Bank expects the number of struggling members taking part in this program to exceed 25,000 by the end of 2004. One of Grameen Bank’s future initiatives with the struggling members will be to extend telephone loans to them to start village phone business, to speed up their move out of poverty.

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Report Prepared by Lamiya Morshed, Zain Bari and Rahima Khatun