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query about grameen

Please help make the Manifesto better, or accept it, and propagate it!
I agree with the observation that micro-credit schemes and 
cooperative banking help in alleviating poverty. but i do not 
understand how banks, deemed banks, i.e can maintain to give lower 
interest rate than the market. After all, the initial capital has to 
come in from the "regular economy" so, that will command a particular 
rate of interest. How can I run a sustainable institution by asking 
lower rates than what i myself give. My observaion is that this will 
utlimately lead to erosion of capital of the bank and unless 
supported by charity, will lead to the bank's collapse. 

Co-operative banks and chit funds (urban equivalent of mutual 
coperative banking)are a different ball game altogether, ecause the 
fund  is created by the self-invested capital of the investor. this 
is a model which will last.

Grameen is an example of the first case (I think), so is it sustained 
by private or government charity ?

just a query, if i have made some mistakes, please tell me where i am 
wrong .


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