Journal of Microfinance / ESR Review


Grameen Bank was the first microfinance institution (MFI) to introduce microleasing on a large scale. This paper provides a preliminary evaluation of Grameen's leasing program. Instead of providing a full-fledged impact assessment study, we examine the terms and conditions of the leasing program and evaluate its success in terms of outreach, repayment rate, and asset ownership.Analysis of program level data shows that the program is successful in terms of outreach and repayment performance. Through the program, poor men and women have become owners of power tillers, power looms, shallow machines, cellular phones, and even computers. The success of leasing suggests some important lessons for MFIs. It shows that poor people have diverse credit needs and that to help the poor borrowers to graduate out of poverty, MFIs have to provide different and flexible products.


Asif Ud Dowla is a Professor of Economics at St. Mary's College of Maryland.



Journal Title

Journal of Microfinance

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