If it works, that's great.
I'm cynical, though, this sounds "too good to be true" and one of those stories that hits all the "buttons".
Recipients form groups of five and members qualify for future loans only if all are current on old ones. The results are hard to argue with - the bank says it has a 99 percent repayment rate.
Many Asian groups do the same thing here in the USA. Loans get paid back by the those who succeed while the losers are frozen out even as their debts get repaid (although sometimes they must repay their debts within the community). It works extremely well, especially in rural villages and tight-knit ethic communities.
There are lots of stories on the web about the Grameen Bank. You could look some of them up. I understand it's easier to just sit on FR and say "I'm cynical", though. The Grameen Bank has been around - and has been well publicized - for several years. It's apparent that you never heard of it before this week.