A Study on Grameen Bank : Impact of Micro-Finance program

Term Paper
On
Impact of Micro-Finance program on Empowerment of poor
people in Bangladesh: A Study on Grameen Bank.
Course Title: Management of NGOs and Social
Entrepreneurship (313)
Submitted to:
Dr. MD. Ruhul Amin
Associate Professor
Dept. of Public Administration
Comilla University.
Submitted by:
MD. Abdul Ahad Mamun
ID: 11803050
Session: 2017-18
Date of Submission:
31/03/2021

TABLE OF CONTENTS
SL. Name of Contents
1 Introduction
2 Methods of the Study
3 Objectives of the Study
4 About Microfinance
5 Characteristics of Microfinance
6 Grameen Bank
7 Structure of Grameen Bank
8 Grameen Bank in World
9 The Grameen Model
10 Credit Lending Models of Grameen Bank
11 Microfinance Programs of Grameen bank, at a Glance
12 Basic features of micro-credit program of Grameen Bank
13 Conclusions
14 Reference

1. Introduction:
Bangladesh has been perhaps the most important hearth on the globe for microfinance providing
organizations. In recent years, micro credit or in its wider dimension microfinance has become a
much-favored intervention for poverty alleviation in the developing and least developed
countries. Recognizing the importance and intensity of the problem of poverty the government of
Bangladesh has given top priority to poverty alleviation in all the past five-year plans and also in
the 15 years (1995-2010) perspective plan for the country. In recent decades, microfinance in
Bangladesh has been implemented by NGOs, Grameen Bank, different types of government-
owned banks, private commercial banks, and specialized banks. Almost all of these
organizations that include such a type of credit program for economic development have given
top priority to involve the poor women because they usually repay their loans regularly.
Women’s access to political, social, economic, and legal institutions is restricted which are
dominated and mediated by men. Men not only control decision-making in various areas of the
household arena, but they also exercise control over women’s income, their access to
employment, their income, their assets, and their choice of marriage partners. Average earnings
of women in most of the countries are lower than those of men. In several developing countries,
marriage is the only career for most women. Very few women get the opportunity to come out of
the four walls and enter professions like industry, engineering, trade, and economic activities.
But it is immensely needed that women should come forward and contribute to the economic
development of Bangladesh and alleviate poverty. Thus, this study tries to identify the problems
of women entrepreneurs in taking a loan as well as problems faced by the bankers in sanctioning
and recovery the loan and executing operations in Grameen Bank borrowers in Bangladesh.
(Rahman et al., 2015)
2. Methods of the Study:

This type of research method, It needed for mixed data collection means Primary data and
Secondary data. But for time limitation and the COVID-19 situation, I couldn’t collect primary
data for this paper. For this, I used here secondary data. I collected data from Books,
Newspapers, Thesis papers, journals, Articles, and Websites, etc.
3. Objectives of the Study:
The overall objective of this research is to identify the barriers and prospects of micro-finance
program in Bangladesh which is playing the vital role as the engine of growth in our economic
development efforts.
The general objectives of this research are given follows:
❏ Examine and highlight differences in socioeconomic status among the target groups.
❏ Identify the factors influencing membership in Grameen Bank.
❏ Identify the factors influencing depth of participation in Grameen Bank.
❏ Eliminate the exploitation of the poor by money lenders
❏ To compare the relative performance analysis of top three MFI: Grameen Bank, BRAC
and ASA.
❏ To suggest what components should be incorporated with the Microfinance program that
will reduce the risk of being vulnerable to poverty. (Amin & Sheikh, 2011)
4. About Microfinance:
Microfinance is a form of financial development that has primarily focused on alleviating
poverty through providing financial services to the poor. Most people think of microfinance, if at
all, as being about micro-credit i.e. lending small amounts of money to the poor. Microfinance is
not only this, but it also has a broader perspective which also includes insurance, transactional
services, and importantly, savings. Microfinance—also called microcredit—is a way to provide
small business owners and entrepreneurs access to capital. Often these small and individual
businesses don’t have access to traditional financial resources from major institutions. This
means it is harder to access loans, insurance, and investments that will help grow their business.
(Nilsson, 2007)