Micro-credit and Poverty Reduction of Grameen Bank

7/21/2019 Micro-credit and Poverty Reduction of Grameen Bank

http://slidepdf.com/reader/full/micro-credit-and-poverty-reduction-of-grameen-bank 1/36

Micro-credit and Poverty Reduction of Grameen Bank

A Case Study of GB Aukpara Branch,Savar,Dhaka.



“Micro-credit and Poverty Reduction”

A Case Study of GB Aukpara Branch,Savar,Dhaka.

Megnakata Barman

ID#11321!

Batc" 2t"

Ma$or %inance& Banking ' In(urance

) Re*ort +u,mitted to t"e De*artment of Bu(ine(( )dmini(tration& ity .niver(ity in Partia/

%u/fi//ment of t"e Re0uirement( for t"e Degree of

Bac"e/or of Bu(ine(( )dmini(tration BB)

Date of Submission: 11 December 21!



Ackno"#ed$ement

I ou/d /ike to give my "eartie(t gratitude4 %rofessor and Dean, Dr. &ihir 'umar (oy&

Intern("i* coordinator in facu/ty of Bu(ine(( )dmini(tration& ity univer(ity& i((ue forarding

/etter to Grameen Bank& "ere intern("i* *rogram "a( ,een carried out and "e "a( given "i( fu//

effort to corre(*ondent it t"e advi(or of my re*ort and make a// kind of nece((ary forma/itie(

regarding my intern("i* and re*ort a( efficient/y4

I ant to give my (*ecia/ t"ank( to t"e )cademic +u*ervi(or 5ecturer& Md 4+"o"idu/ I(/am for

"i( (u**ort and enormou( "e/* t"roug"out t"i( Intern("i* *rogram& e(*ecia//y "i( guide/ine(

t"roug"out t"e *eriod of *re*aring t"e re*ort4

I "earti/y t"ank a// t"e officia/( of t"e Grameen Bank, )ead *ffice, &irpur+2, for t"eir

(u**orting a( e// a( co-o*erating me a( an intern in t"eir organi6ation4I am very muc" gratefu/ to t"e aut"ority of Grameen Bank to a((ign me a( internee in t"i(

re*uted ,ank and "aving t"e o**ortunity to /earn t"eoretica/ a( e// a( *ractica/ kno/edge

re/ated to overa// Micro-credit ,anking (y(tem and com*/ete( (uc" an am,ition( (tudy for our

intern("i* *rogram a( e// a( for t"e *re*aration of t"i( re*ort4 7(*ecia//y I ou/d /ike to t"ank

my oordinator &d.Abdus Sabur 'han.

I a/(o ou/d /ike to t"ank &d.Abdu# Barik Shaikh, Branc" manager of )uk*ara4

),ove a// I ant to t"ank t"e aut"ority of Grameen Bank and De*artment of Internationa/

Re/ation(& ity .niver(ity for *roviding me (uc" an o**ortunity to come c/o(er to t"e rea/ or/d

can "e/* me in enric"ing my kno/edge4

4



5



Dec#aration of the Student

I "ere,y dec/are t"at t"e re*ort of intern("i* name/y “&icro+credit and %overty (eduction” of

Grameen Bank4 ) Case Study of )uk*ara Branc"4 )fter com*/eting 12 eek intern("i* at

Grameen Bank& *eru(ed under t"e (u*ervi(ion of Md4 +"o"idu/ I(/am De*artment of Bu(ine((

)dmini(tration& ity .niver(ity4

I a/(o dec/are t"at t"i( *a*er i( origina/ orked and *re*ared for academic *ur*o(e4

888888844

Megnakata Barman

ID 11321!


De*artment of Bu(ine(( )dmini(tration

ity .niver(ity

6



Supervisor Certification

I "ave t"e "a**ine(( to a**rove t"e *ro$ect re*ort tit/ed “&icro+credit of %overty (eduction

“of Grameen Bank4 ) a(e +tudy of )uk*ara Branc"” (u,mi((ion ,y Megnakata Barman&

Batch 2t" D-11321! for (u,mi((ion at t"e De*artment of Bu(ine(( )dmini(tration under&

ity .niver(ity for *artia/ fu/fi//ment of t"e re0uirement for t"e degree of Bac"e/or of Bu(ine((

)dmini(tration4 I endor(e t"at t"i( re(earc" ork and content( of t"i( t"e(i( "a( accom*/i("ed

under my (u*ervi(ion4

444444444444444444444444444444444444444444444444444444444444444

Md4 +"o"idu/ I(/am

5ecturer&


ity .niver(ity

7ii



/00/( * 0(AS&00A

Date 19& %e,ruary 2!1:

;o&

Md4 +"o"idu/ I(/am

5ecturer&


ity .niver(ity

+u,$ect +u,mi((ion of Intern("i* Re*ort on& 3&icro+credit and %overty (eduction“of

Grameen Bank4 A Case Study of Aukpara Branch.

Dear +ir&

I am a gratefu/ to you for t"e (u,mi((ion of t"e re*ort on 3&icro+credit and %overty

(eduction4 of Grameen Bank.) a(e +tudy of GB )uk*ara Branc" in t"e com*/etion of t"e

re0uirement for intern("i*4 ;"i( i( an e<ce//ent o**ortunity for me to ac0uaint more c/o(e/y it"

t"e organi6ation4 ;"e a((ociation and coordination of re(*ective officer( ' (taff( it" me are fu//

of e<citing& redi(covering and entertainment4 During t"e *eriod of doing t"i( re*ort I "ave

di(covered and gained ne and *ractica/ fee/ing(& o,(ervation and /earning4 I "ave my utmo(t

effort to ref/ect e<*erience& (ki// and kno/edge& "ic" I ac0uired at t"e time of orking at

Grameen Bank4 )// of my effort( i// ,e (ucce((fu/ if t"e re*ort can (erve it( *ur*o(e4 I "ave

tried my ,e(t to e<*/ain everyt"ing re/ated it" t"e &icro+credit and %overty (eduction of Grameen Bank.

;"ank =ou

=our( +incere/y&

44444444444444444444444444444444

Megnakata Barman

ID # 11321!



ity .niver(ity

8iv



/5ecutive Summary

;"i( re*ort i( “&icrocredit and poverty (eduction of Grameen Bank>>) a(e +tudy of GB

)uk*ara Branc"4 ;"irty 7ig"t year( ,efore in )uk*ara Branc" mo(t of t"e *eo*/e a( *oor t"ey

"ad no money& e// "ou(e& (anitary /atrine(& tu,ee//& and no fami/y */an4 ?n/y t"ey ere(urviving on/y t"eir "ard ork it" t"eir ,a(ic need(4 Grameen Bank )uk*ara Branc" *rovide(

Micro credit to im*roving t"em(e/ve(4 Poor *eo*/e taking /oan every year and u(ing t"e ("ort

amount of money for t"eir (ma// ,u(ine((& day 5a,or ,a(ica//y t"ey are im*roving t"em(e/ve(4

;"i( (tudy i( ,a(ed on t"e (econdary (ource t"oug" (ome fie/d data ere co//ected t"roug"

conver(ation and o,(ervation4

;"e finding( of t"e (tudy ,a(ed on t"e (etting o,$ective( and ana/y6ing t"e (tudy4 Microcredit

and it( .ti/i6ation& @"o ,orroed Microcredit and @"y& @"o ere t"e .(er( of t"e redit& @"y

microcredit from Grameen Bank4 ;"e redit .*grade( ,orroer>( +ocia/ 5ife(ty/e4

;"e (tudy recommended t"at Grameen Bank )uk*ara Branc"4 Aeed( to *ay more attention4 GB

("ou/d arrange t"e num,er of (eminar( and (ym*o(ium in t"e gra((-root /eve/ to en"ance t"e

micro-credit *rogram4 ;"i( ("ou/d o,viou(/y ,e "e/*fu/ of t"e rura/ *oor *eo*/e (ocio-

economica//y4

onc/u(ion are micro-credit "a( ,een (ucce((fu/ in reducing *overty ,y creating (e/f-em*/oyment and increa(ing income generation activitie( in )uk*ara Branc"4

9



0ab#es of Contents

;o*ic)ckno/edgement i

Dec/aration ii

+u*ervi(or>( ertificate iii

5etter of ;ran(mitta/ iv

7<ecutive +ummary v

"a*ter I

ntroduction

141 Background of +tudy 1

142 ?,$ective of t"e +tudy 2

143 +co*e of t"e (tudy 214241 Met"odo/ogy 2

14242 +ource( of data 2

14243 +econdary data 3

14249 Primary data 3

1424: Data Proce((ing 3

1424 5imitation( of t"e (tudy 3

"a*ter CII

An *vervie" of &icrocredit and the poverty in Aukpara Branch

241 Branc" irearc"y 9242 5ending Mode/ of GB :

243 enter ierarc"y :

249 +tati(tica/ Information of )uk*ara Branc" -E

24: Pur*o(e of t"e 5oan

24241 )na/y(i( of Intervie it" t"e Branc" Manager -11

10

v



24242 ?rganogram of Grameen Bank %ie/d ?*eration 12

"a*ter-III

inancia# and non+inancia# actors on the poor peop#e of the

Aukpara Branch341 %inancia/ %actor( of t"e Branc" 13-1:

342 Aon- %inancia/ %actor( of Poverty Reduction 1-1E

343 %inding and re(u/t 1E

34341 Microcredit and it( .ti/i6ation 1

34342 @"o ,orroed Microcredit and @"y 1-1F

34343 @"o ere t"e .(er( of t"e redit 1F

34349 @"y microcredit from Grameen Bank 1F-2!

3434: o t"e redit .*grade( ,orroer>( +ocia/ 5ife(ty/e 2!

"a*ter CI

indin$s (ecommendations and Conc#usion

941 %inding( 21

942 Recommendation( 21-22

943 onc/u(ion 23

949 Reference 29

11



12



Chapter +

ntroduction

1.1Back$round of Study:

Bang/ade(" Grameen Bank i( one of /eading Microcredit in(titution( "ic" *rovide (ma// /oan(

to *oor *eo*/e& main/y omen4 ;"e(e omen u(ed t"e money to (tart ,u(ine((e( (uc" a(

groing and (e//ing rice vegeta,/e(& "andicraft(& (ari( etc& to "e/* (e/f-em*/oyment and income4

;"e main o,$ective of Microcredit *rogrammer( i( to increa(e income generating activitie( in t"e

*eo*/e of Bang/ade(" to em*oer t"em (ocia//y and economica//y to *overty reduction4

Microcredit "a( integrated different monetary and non-monetary initiative( to t"e *eo*/e4 +ma//

,u(ine(( /oan(& agricu/tura/ /oan(& "ou(ing /oan( "ic" "ave dramatica//y c"anged t"e /ive( of

t"e *eo*/e4 Different Microcredit in(titution( em*/oy different ty*e( of /oan( to *overty

reduction4

"i/d education and "ea/t" /oan& training and deve/o*ment *rogramme(& grou* meeting&

(anitation etc are ,eing *rovided ,y Microcredit in(titution( to it( e<i(ting c/ient(4 Bunyan

e<*/ained t"at Microcredit *rogrammer(> in Bang/ade(" e<tend t"eir credit (ervice( ,y *roviding

different non- credit (ervice(4 ;"e main *ur*o(e of *roviding /oan and ot"er (u**orting

initiative( i( to deve/o* (ocio-economic /ive( of *eo*/e4 5oan( engage t"em in income generating

activitie( and t"e non -monetary initiative( increa(e t"eir (ki//( in different ay4 ;"i( re(earc"

inve(tigate( t"e ro/e of Microcredit *o/icy to remove *overty of (tudy area4 @"ic" i( (ituated in

near D"aka city and it>( a rura/ area it"in t"e city and "ere mo(t of t"e *eo*/e ere very *oor

,ut no no-day( t"ey "ave im*roved t"eir economic condition4 +o& t"i( (tudy "e/*ed to kno

"o t"ey im*rove t"eir economic condition4

1



1.2 *b6ective of the Study:

;"e (*ecific o,$ective( of t"e (tudy are a( fo//o(

;o give t"e overvie of microcredit in *overty a//eviation in )uk*ara Branc"4

;o ana/y(i( t"e financia/ and Aon-financia/ factor( in *overty a//eviation of t"e *oor *eo*/e of t"e Branc"4

;o (ugge(t *o/icy im*/ication( ari(ing out of t"e (tudy

1.7 Scope of the study:

It ("ou/d inc/ude t"e varia,/e( "ic" /evered in t"e (tudy4

1.2.1 &ethodo#o$y:

;"e met"odo/ogy of t"i( (tudy i( an e<*/oratory re(earc" (tudy ,a(ed on o,(ervation Grameen

Bank ,ranc" and inter*retation in nature of data (ource( are (c"edu/ed (urvey& informa/

di(cu((ion it" *rofe((iona/( and o,(ervation "i/e orking in different c/erk and genera/

conce*t deve/o*ment a,out t"e ,ank ("ort intervie( and di(cu((ion (e((ion ere taken a(

*rimary (ource4 ;"e (tudy ado*ted u(ing con(i(t( of /iterature revie and +ource( of data&

(econdary (ource( and *rimary (ource(& Data *roce((ing and (e/ection *roce(( from rura/

community ,orroer>( mem,er( of microfinance in(titution(4 ;"i( re*ort i( ,a(ed on my

intern("i* e<*erience in Grameen Bank4

1.2.2 Sources of data:

;o co//ect data& t"e re(earc"er "ad gone to (evera/ center( /ike )uk*ara Branc"4 +ince t"i( (tudy

doe( intend to mea(ure (ervice 0ua/ity to a *articu/ar or defined area& re(*ondent( ere random/y

a**roac"ed in center( of Grameen Bank )uk*ara Branc"4 +am*/ing "a( a convenient a**roac"in data co//ection *rocedure t"at i// ,e conducted at different /oan ,orroer ne ,orroer(& o/d

,orroer(& education /oan& Ba(ic /oan& f/e<i,/e /oan& "ou(ing /oan and ot"er /oan ,orroer4 Mo(t

of t"e ,orroer( are omen e<ce*t education /oan ,orroer(4

1.2.7 Secondary data:

2



%ie/d +tudy and Branc" document

Grameen Bank 5i,rary

Grameen Bank and Micro-redit ?*eration re*ort

@e, (ite4

1.2.8 %rimary data:

Primary data are fir(t "and information data co//ected (*ecifica//y for t"e re(earc" *ro$ect ,eing

under taken4 Data co//ected from *rimary (ource( ere ,a(ed on fo//oing ay(4

%ace to face conver(ation it" t"e Grameen Banka admini(trative de*t4 and Internationa/

de*t(4 ?fficer( ' (taff(4

%ace to face intervie it" t"e c/ient4

?,(ervation4

1.2.! Data %rocessin$:

o//ected information i( *roce((ed ,y t"e u(e of com*uter (y(tem4 Detai/ed ana/y(i( ,y

Micro(oft ord and Micro(oft e<ce/4

1.2.9 imitations of the study:

;"e (tudy ,a(ed on )uk*ara Branc" micro-credit de/ivery organi6ation( of Grameen Bank4 But it

"a( ,een /imited ,ecau(e of t"e /imitation of financia/ (u**ort and /ack of avai/a,i/ity of time

on/y five day( vi(it 1! center( and vi(it Grameen Bank +avar& )rea office& (o t"e (tudy "ad ,een

time /imited& in (ufficient of information i( one of t"e ma$or /imitation( and *re*ared re*ort4

Chapter

3



An *vervie" of &icrocredit and the poverty in Aukpara Branch

)uk*ara Branc"& )("u/ia& +avar& D"aka i( mo(t (ucce((fu/ Branc" of Grameen Bank4 It

e(ta,/i("ed on 1! t" Hu/y 1FFE4 ;"ere are (even center( in t"e ,eginning and at *re(ent t"ere "a(:1 center(4 Pre(ent mem,er( are 3994;"ere are em*/oyee ork in t"e ,ranc" and t"e ,ranc"

code no -1!F!-!EFE4;"i( ,ranc" i( more (ucce((fu/ ,ecau(e it recovery rate i( FF4:14 ;"e

Branc" Manager Md4),du/ Barik +"aik"4 Grou* ,a(e i( e//-,ui/t4

enter o,(ervation furt"er effective4

Mem,er income (ource( are good4

Bu(ine(( faci/itie( are good ,ecau(e& t"ey are neig",or"ood area of D"aka4enter grou* c"airman>( are o/d and more e<*erience ' e// aare4

enter officer>( "ave a good under(tanding it" mem,er(4

2.1 Branch )irearchy:

i$er 1: Branch )irearchy:

!

9

Sources: Branc" Manager& )uk*ara Branc"4

2.2 endin$ &ode# of GB:

4

Assistant

*fficer

enter manager

*fficer

enter manager

*fficer

enter manager

Senior officer

+econd officer

Senior officer

Branc" manager

*fficer

enter manager

*fficer

enter manager



-

e

n

t

e

r

M

a

n

a

g

e

-

e

n

t

e

r

M

a

n

a

g

e

r o

u *

Gr

ou

*

Grameen Bank fo//o( (u,(idi6ed credit mode/& "ere it doe( e// in /ending ,ut *oor/y in

mo,i/i6ing (aving(4 It i( funded ,y government and donor agencie(4 It cover( a// ty*e of

economic activitie( inc/uding "ou(ing4 ;"e ,ank /end( t"roug" a grou* of :4;"i( i( ca//ed

(o/idarity /ending4 ;"e initia/ /oan (i6e i( ;k4:!!!4 Grameen BankJ( intere(t rate i( /oer t"an

government rate4

2.7 Center )ierarchy:

i$ure 2: Center )ierarchy:

Sources: Branc" Manager& )uk*ara Branc"4

2.8 Statistica# nformation of Aukpara Branch:

5

Mem,er

+ecretar

Mem,er

Mem,er

+ecretar

Mem,er

Mem,er

Mem,er

Mem,er

Mem,er

Mem,er

+ecretary

Mem,er

Mem,er

Mem,er

+ecretary

Mem,er

Mem,er

+ecretary

Mem,er

+ecretar

Mem,er

Mem,er Mem,er

Mem,er

+ecretary

Mem,er

Mem,er

+ecretary

Mem,er

Mem,er

Mem,er

+ecretary

Mem,er

Mem,er

Mem,er



Branch ame: )uk*ara Branc"

Branch Code: 1!F!!EFE

0ota# o of /mp#oyees: ! 7m*/oyee( and one *eonKguard

0ab#e 1: *vervie" of the Branch:

Sources: Branc" Manager )uk*ara4

6

S#. %articu#ar 0aka;<uantity

1 umu/ative amount Di(,ur(ed +ince Ince*tion F&1E&:&1F

2 umu/ative amount Re*aid +ince Ince*tion 3&33&:&3

3 )mount Di(,ur(ed ;"i( Mont" F24! /ac

9 )mount Re*aid ;"i( Mont" 4F9 /ac

: ?ut(tanding 5oan( :F942 /ac

Rate of Recovery FF43 Percent

= &icroenterprise oans >Cumu#ative? 3&113&1

E41 Ao4 of Microenter*ri(e 5oan( E!

E42 )mount Di(,ur(ed 2F&!!&!!!E43 )mount Re*aid 3E&E&!!F

@ Ba#ance of Deposits 18.

41 Mem,er>( De*o(it( E4:!

42 Aon Mem,er>( De*o(it>( 4:!

)i$her /ducation oan .=2

F41 Ao4 %ema/e !2

F42 Ao4 Ma/e 12 *er>(

F43 )mount Di(,ur(ed %ema/e 132&!!!F49 )mount Di(,ur(ed Ma/e :&&!!!

1!41 +c"o/ar("i* Reci*ient %ema/e ! *er>(

1!42 +c"o/ar("i* Reci*ient Ma/e 1 *er>(

1!43 +c"o/ar("i* )mount %ema/e 1&FF&!!!

1!49 +c"o/ar("i* )mount Ma/e 99&::!

11 0ota# umber of &embers 7!=

1141 %ema/e 3:E! *er>(

1142 Ma/e AI5

1241 Aum,er of Grou*>( :FF

1242 Aum,er of centre>( :1

1243 Aum,er of i//age>( 39

1249 Aum,er of Branc"e(> 2:E



2.!%urpose of the oan:

i$ure 7: %urpose of the oan

Sources: )uk*ara Branc" Mo(t Pur*o(e of t"e 5oan4

2.2.1 Ana#ysis of ntervie" "ith the Branch &ana$er:

Intervie it" &d. Abdu# Barik Shaikh Branc" Manager of )uk*ara Branc"4 Grameen Bank

i( a vita/ too/ to o,tain t"e va/id data for t"i( re(earc"4 ;"e intervie a( taken at Grameen Bank

7

HouseGlossarStationar

Nurser Tea stall Pur*o(e

of t"e

5oanFish Car usiness

Furniture Sho

House "entHouse#$ $ulture



)uk*ara Branc" office4 In t"i( intervie 9 un(tructured 0ue(tionnaire( a,out micro-credit "ave

,een di(cu((ed to e<*/ore t"e contri,ution of Grameen Bank of *overty reduction4 )t time of

intervie& Branc" Manager "e/*ed re(earc"er to conduct t"e re(earc" finding(4

<.1. "hat is mean by poverty to you

;"e re(*ondent mentioned t"at *overty "a( different meaning to different *eo*/e4 I t"ink *overty

mean( a (ituation "en a *er(on or fami/y doe( not "ave (ufficient income to (ati(fy t"eir ,a(ic

need (uc" a( food& "ou(ing& c/ot"ing etc4 @e kno t"at "uman need( cannot ,e (ati(fied ,ut e

try to (ati(fy t"e ,a(ic need of "uman t"roug" microcredit to remove t"eir *overty a( e// a(

overa// *overty of t"e country4

<. 2. hat type of financia# factors has been emp#oyed by GB for

poverty (eduction

Intervie it" Branc" Manager of )uk*ara de(cri,ed t"at (ome of t"e financia/ initiative( "e/*

to remove *overty4 Re(*ondent>( an(er inc/uded& Grameen Microcredit *rovide( /oan( (uc" a(

micro-enter*ri(e /oan& micro /oan& agricu/tura/ /oan& ou(e /oan for rent *ur*o(e&& farming /oan&

,u(ine(( /oan4 ;"en re(*ondent a( a(ked detai/( a,out t"e /oan( initiative( from GB4 e

e<*/ained t"at micro-enter*ri(e /oan i( e(*ecia//y for (ma// ,u(ine(( and ot"er income generating

activity *ur*o(e4 ;"e /oan range( from 1!!!! to 2& !!&!!! ;L4 ;"i( amount i( (ufficient for

(tart-u* of (ma// and medium (i6e ,u(ine((4 Micro /oan initiative i( (ma//er t"an micro-enter*ri(e

/oan4 ;"i( /oan( (tart from :!!! to :!!!! ;L4 i( t"e ma<imum can ,e /ent4 oever& it i(

(ma//er t"an micro-enter*ri(e /oan ,ut t"i( amount i( (ufficient for a "ou(e"o/d income

generating activitie(4 ;"e(e /oan( encourage omen in Lat" (titc"ing tai/oring& (ericu/ture '

men in (tarting a (ma// grocery ("o*& tai/oring4 )gricu/tura/ /oan( range from tk42!&!!! C 2!!!!!

"ic" i( given for t"e *ur*o(e to *rovide "e/* toard( groing vegeta,/e( gardening& irrigation

*um*ing& /ive(tock rearing "ic" generate income4 ou(ing /oan range from 1!&!!!-1&!!!&!!!

"ic" i( given to it( mem,er>( for rent income *ur*o(e4 Ao GB a/(o *rovide /oan for /arge ,u(ine(( *ur*o(e4 ;"e mo(t im*ortant matter i( t"at GB a/(o *rovide( /oan to t"e ,agger for

engage t"em(e/ve( in "ic" i( an im*ortant initiative of *overty reduction4 It ("o( t"at GB

Microcredit i( de(igned for income generating *ur*o(e(4 Different ty*e( of /oan /ike micro-

enter*ri(e /oan& micro /oan& agricu/ture /oan& "ic" are e<c/u(ive/y for *eo*/e>(4 ;"o(e ty*e( of

8



/oan( can encourage *eo*/e to engage t"em(e/ve( in income generating activitie( to a//eviate

*overty4 Grameen Bank a( e(ta,/i("ed main/y for *overty reduction t"oroug" financia/

initiative(4 Different ty*e( of /oan micro-enter*ri(e /oan and micro-/oan and agricu/ture /oan

"ic" are e<c/u(ive/y for omen *ur*o(e(4

Re(*ondent (tated t"at every /oan ,orroed t"ey mu(t "ave (aving( account in t"e name */u( an

o*tion to $oin a Red GP+ Grameen Pen(ion +c"eme4 But a/(o to note t"at 3 ou/d ,e taken

from t"e /oan re*ayment toard( t"e c/ient>( GP+4 )fter : year( every GP+ get( matured it" a

/arge amount4 ;"i( (c"eme i( em*/oyed for (aving money for rainy day4 ;"i( (aving( (c"eme can

,e "e/*fu/ to ,orroer( for t"eir (ma// ,u(ine(( deve/o*ment& fami/y e<*enditure& c"i/dren

education& "ea/t" etc4 +o t"erefore& it can ,e identified t"at GB "a( a concern in re/ation to

(aving( for it( c/ient(4

<.7. "hat type of non+financia# >supportin$? factors has been emp#oyed by GB

of poverty reduction

Intervie it" ,ranc" Manager "a( ,een e<*/ored (ome (u**orting activitie( of )("u/ia Branc"4

Graeme Bank Microcredit "ic" are va(t/y im*ortant of *overty reduction4

Intervie e<*/ore( t"at in t"i( ,ranc" Grameen Microcredit organi6e( training and deve/o*ment

*rogramme for t"o(e mem,er( "o are invo/ved in ,u(ine(( or ot"er income generating

activitie( to deve/o* t"eir (ki//4 ;"e(e training *rogramme( give o**ortunitie( to get ne

,u(ine(( idea( and ne tec"no/ogica/ kno/edge4 In every mont" at Grameen Bank re*ayment

centre GB (taff( di(cu(( it" it( ,orroer>( /ike/y entre*reneur( a,out t"eir *ro,/em( and try to

find (o/ution(4 +ome critica/ i((ue( are re*orted in )rea ?ffice ,y t"e ,ranc" manager(4

Intervieee& a/(o (tated t"at GB *rovide grou* ,a(ed /oan( and grou* mem,er( are encouraged

to "ave meeting at re*ayment centre a( t"ey can di(cu(( it" eac" ot"er to find (o/ution( to

,u(ine(( innovation4 Grou* /ending (y(tem increa(e( t"e *otentia/ mem,er(> to ,orro t"e /oan(4

GB (taff( a/ay( maintain c/o(e (u*ervi(ion of /ender( income activitie( a( t"ey cannot mi(u(e

t"e /oan money4 +taff( go to /ender>( "ome and o,(erve t"eir activitie( "ere t"e /oan( "ave ,een

uti/i6ed4 %urt"ermore omen mem,er(> a/ay( face (ome fami/y re(triction and (ocia/ ,arrier( to

(tart income generating activitie( due to dome(tic *ro,/em(4 GB (taff( a/ay( co-o*erate it"

omen /ender( to ,reakdon t"e (ocia/ ,arrier(4 ;"ey di(cu((ed it" t"e /ender>( fami/y a,out

9



t"e im*ortance of generating income4 Intervieee a/(o e<*/ored t"at GB *rovide "ea/t" and

education /oan for Microcredit /ender>( c"i/dren education at intere(t free credit& give re/ief to t"e

*oor during natura/ ca/amitie(& *rovide free (eed for agricu/ture *ur*o(e & arrange nur(ing

training *rogram for *oor mem,er>( c"i/dren it"out any co(t& *rovide (c"o/ar("i* /oan for

microcredit /ender c"i/dren>(> "ig"er education *ur*o(e at intere(t free credit4

+o& it can ,e noted t"at Grameen Microcredit "a( em*/oyed /ot of (u**ortive activitie( and it(

(taff>( co-o*erate it" /ender( in many ay( removing (ocia/ ,arrier(& *ro*er uti/i6ation of

/oan(& di(cu((ing a,out to find (o/ution(4 ;raining and deve/o*ment *rogramme& introducing

grou* /ending (y(tem and (taff>( co-o*eration */ay a vita/ ro/e to encourage *eo*/e to engage

t"em(e/ve( to *overty reduction4 ;"o(e factor( ena,/e communication kno/edge&

entre*reneuria/ (ki//( and ne idea( etc4 +o t"erefore& t"o(e factor( can ,e identified a(

(timu/atory activitie( of GB4

;"e(e finding( ref/ect "at Roadman and Honat"an 2!!F (tated t"at M%I( (taff( "e/* to

overcome t"e (ocia/ ,arrier( to it( c/ient(4 ;"e(e finding( a/(o (u**ort "at Larim 2!11 (tated

t"at Microcredit in(titution( organi6e training and deve/o*ment *rogramme( to increa(e t"e

entre*reneuria/ (ki// and *rovide ne *roduct and tec"no/ogy idea( among(t t"e ,orroer(4 It

organi6e( mont"/y meeting it" grou* ,orroer( and *rovide( kno/edge to uti/i6e t"e /oan

money4

<.8. hich factors of Grameen &icrocredit need to improve for poverty

(eduction

Re(*ondent (tated ,orroer( e<*ect t"at t"ey need more e<tended /oan faci/itie( and to

guarantee /oan( i// ,e removed at a ("ort notice to rai(e ca*ita/4 +o& t"erefore GB "a( taken

a,oard "at "a( ,een (aid ,y t"e ,orroer(4 ;"e Initia/ 5oan amount i// ,e increa(ed from

1!&!!! to 2!&!!! ;L4 retro(*ective/y for micro-enter*ri(e /oan and :&!!! - 1!& !!! ;L4 in micro-

/oan category4 ;raining and deve/o*ment *rogramme( are organi6ed in None ?ffice 3 time( a

year and it i( 0uite far from ,orroer>( /iving */ace4 +o t"erefore& GB */anned to *rovide free

tran(*ort to t"e None ?ffice from every area "ic" "a( GB re*ayment centre4 ;raining and

deve/o*ment *rogramme( i// ,e organi6ed (i< time( a year4 ;"e(e c"ange( i// ,e im*/emented

,y t"e year ending 2!194

10



;"e(e finding( indicate t"at Grameen Bank "a( (ome /imitation( around e<tended /oan faci/ity

and t"e ot"er ,urning i((ue i( around training and deve/o*ment i( not fre0uent& ,ut t"ey are

trying to re(o/ve t"e(e i((ue( one ,y one t"roug" negotiation it" good intention around t"e

t"eme *overty reduction4 @"en t"e(e c"ange( do "a**en& it i// ,e an immen(e contri,ution

toard( *overty reduction4

2.2.2 *r$ano$ram of Grameen Bank ie#d *peration:

i$ure 8: *r$ano$ram of Grameen Bank ie#d *peration

11

ead !ffice

Nona/ )udit ?ffice 9!

3 )udit team at 7ac" N4)4?

Nona/ office 9!

1!-12 )4? at 7ac" )4?

)rea office 2

1!-12 Branc"e( at eac" )rea

Branc" office 2,!9@?

8+9 center each Branch

enter 1,77=,7@?

7ac" center "a( -1! grou*(

Grou* 1,77=,7@?

: mem,er( make a grou*

"airman +ecretary Mem,er Mem,er Mem,er



Sources: GB ead ?ffice D"aka

Chapter+

inancia# and non+inancia# actors on the poor peop#e of the Aukpara

Branch

7.1 inancia# actors of the Branch:

A. oan %roduct:

14 Basic oan:

;"e ,a(ic /oan (tarted it" :!!! taka *er individua/4 ;"e intere(t of ,a(ic /oan i( 2! on

dec/ining ,a(i(4 Borroer "a( to *ay t"i( money it" 1! more it"in one year in 99

in(ta//ment(4 )fter re*aying 23 in(ta//ment( ,arroer i// get more money if ("e ant(4

;"i( i( t"e main /oan *roduct of Grameen Bank4 )ny *oor *er(on can get t"i( ty*e of /oan4 )//

,orroer( (tart it" a ,a(ic /oan Oea(y” /oan4 Mo(t of t"e ,orroer( i// continue it" t"i(

,a(ic /oan of t"e Branc"&

24 &icroenterprise oan:

) mem,er can to take Microenter*ri(e /oan after t"ree year(4 If mem,er( ant to take a /arge

amount /oan "e or ("e i( to take microenter*ri(e /oan4 In microenter*ri(e ten to four /ac taka i(

*rovided ,y GB4

34 #e5ib#e oan:

+u**o(e a mem,er "o "a( to *ay 2!! taka *er eek4 But "e or ("e i( not a,/e to *ay 2!! taka

*er eek4 In t"at time "e or ("e can *ay 1!! taka *er eek4 @it"out any *ro,/em GB don>t

*rovide t"i( faci/ity or f/e<i,/e /oan4

94 0he )ousin$ oan:

12



)fter t"ree year( a mem,er can to take "ou(ing /oan4 GB *rovide 1!&!!! to :!&!!! taka for

"ou(ing /oan and intere(t rate i( dec/ining ,a/ance and re*ayment duration i( t"ree or four

year(4

:4 )i$her /ducation oan:

Grameen Bank *ay "ig"er education /oan *ray for ,orroer( ta/ented c"i/dren of it( ,orroer( to

*ur(ue "ig"er education in medicine& engineering& agricu/ture and ot"er "ig"er education

*rogramme( at t"e graduate and *o(t-graduate /eve/(4 Nero *ercent re*ayment and intere(t during

(tudy *eriod4 )fter fini("ing (tudy take : intere(t4 n Aukpara Branch 72 member have

taken this #oan.

D/G(//;DSC%/ &ember Amount >BD0?

Ma(ter( Genera/ 9 3!&!!!

Bac"e/or degree onor( 19 1&!E&!!!

B4 +c4 7ngineering 9 3!&!!!

M4 +c4 )gricu/ture 3 231&!!!

B +c4 )gricu/ture E :3F&!!!

;ota/ 32 2&99&!!!

4

14

4

37

32

Member

1

2

3

4

5

6

13

1& 'asters (General)2& *a$helor +e,ree

(Honors)3& *& S$&

(-n,ineerin,)4& '& S$& (.,ri$ulture)5& * S$& (.,ri$ulture)6& total



308/000

1/078/000

308/000

231/000539/000

2/464/000

Amount (BDT)

1

2

3

4

5

6

i$ure 9: ig"er 7ducation 5oan

14

DEGREE/DISCIP

LINE

1&'asters(General)2&*a$helor+e,ree (Honors)3&*& S$&(-n,ineerin,)4&'& S$&(.,ri$ulture)5&* S$&(.,ri$ulture)



4 Stru$$#in$ &ember oan:

GB are *rovide (trugg/ing /oan for ,eggar mem,er4 ! intere(t and don>t /imit any

re*ayment time4 If "e or ("e deat" /oan automatica//y off4

B. Savin$s %roduct:

;"ere are (i< ty*e( of (aving( t"e(e are given ,e/o-

• %ersona# savin$s ?*en for a//4

• G%S Savin$s ?n/y o*en for GB mem,er or em*/oyee4

• oan nsurance: ?n/y o*en for GB mem,er or em*/oyee

• i5ed nsurance: ?*en for a//4

• /i$ht Eears Doub#e: ?*en for a//4

• &onth#y Benefit: ?*en for a//4

7.2 on+ inancia# actors of %overty (eduction:

1. /ducation:

ua/ity education em*oer( *eo*/e to take advantage of o**ortunitie( around t"em4 It "e/*(

c"i/dren get kno/edge& information and (ki//( t"ey need to rea/i6e t"eir *otentia/4 ;raining

teac"er(& ,ui/ding (c"oo/(& *roviding education materia/( and ,reaking don t"at *revent

c"i/dren from acce((ing education are im*ortant feature( of *overty reduction *rogramme4

2. )ea#th, ood and ater:

Many *rogram( aim at fee/ing kid( at (c"oo/ and *roviding "ea/t" (ervice a( e//4 ;"i(

encourage( *arent( to (end c"i/dren to (c"oo/ and kee* t"em t"ere4 If c"i/dren "ave food to eat&

and are "ea/t"y& t"ey can /earn and re(*ond to t"e need( of t"e *rogramme4

15



7. %rovision of Ski##s and 0rainin$:

;"e yout" and a,/e-to-ork in t"e communitie( are *rovided (ki//( to "e/* it" farm ork or

ot"er economic activity& "ic" "e/*( t"em& earn money to make a /iving and take care of t"eir

fami/ie(

8. ncome (edistribution:

It i( im*ortant t"at t"e government e<tend( it( deve/o*ment *rogram( (uc" a( road(& ,ridge(& and

ot"er economic faci/itie( to rura/ area(& to make it ea(y for good( and (ervice( and farm *roduce

to move to and from t"e farming communitie(4 @it" a ,it of effort in t"e area( mentioned a,ove&

it on>t take /ong to (ee rea/ im*rovement( in t"e /iving condition( of t"e community4

:4 Group formation:

Grou* /ending (y(tem i( an effective initiative for increa(ing interactive *oer of ,orroer( a(

e// a( o,taining ne ,u(ine(( idea(4

4 0rainin$ and deve#opment pro$rammes:

Grameen Bank Microcredit *rogram organi6e( training and deve/o*ment *rogramme to im*rove

t"e entre*reneuria/ (ki//4 Ae *roduct kno/edge& tec"ni0ue( of ,u(ine(( and current *ro,/em(

(o/ution( a/(o *rovide in training and deve/o*ment *rogramme(4

E4 Savin$s initiatives:

)gain(t every /oan every ,orroer "a( a (aving account4 Borroer( are encouraged to *ay (ome

e<tra money it" eek/y in(ta//ment and t"at e<tra money de*o(it to ,orroer( (aving account4

Microcredit *rogramme increa(e( (aving( among(t t"e ,orroer(4 ;"at (aving( money a/(o can

,e "e/*fu/ to ,orroer( for t"eir (ma// ,u(ine(( deve/o*ment4

16



4 Deposit Scheme:

Grameen Bank Microcredit *rogramme "a( ,een introduced different ty*e( of de*o(it (c"eme4

%or every ,orroer it i( a vo/untary mont"/y (aving (c"eme4 In t"i( (c"eme every ,orroer *ay(

mont"/y 2!!;L C 1!&!!!;L4 )fter : year( t"e (c"eme ,ecome( matured and t"e return va/ue i(

enormou(4

Microcredit *rogramme *rovide( financia/ (u**ort( to t"e rura/ *oor t"roug" different ty*e( of

/oan( and emerge t"em in generating income4 oever& Microcredit i( inca*a,/e to *rovide

ade0uate credit faci/itie( to commence a ne activity ,ut t"e amount i( effective a( an initia/

ca*ita/ for (ma// ,u(ine((e(4

7.7 indin$ and resu#t:

;"e ana/y(i( data focu( grou* di(cu((ion4 ;"ere ere t"ree focu( grou* di(cu((ion( arranged in

t"ree center(4 Di(cu( variou( i((ue( of *overty economic indicator( (uc" a( (trategie( of credit

uti/i6ation& income& (ource( of income& (aving& *overty *ro,/em& acce(( to ,a(ic "uman need(&

omen em*oerment etc4 ;"e fema/e ,orroer( of Grameen Bank "o ere inc/uded in

intervieing ere t"e *artici*ant( in t"e di(cu((ion4

7.7.1 &icrocredit and its Fti#iation:

;"i( to*ic di(cu((ed in t"e focu( grou* di(cu((ion i( "y t"e re(*ondent( needed microcredit4

7ac" of t"e *artici*ant( di(cu((ed t"e i((ue from t"eir on *oint of vie4 It a( o,(erved t"at

t"e *artici*ation ere varietie( in nature from t"eir occu*ation& fami/y (tructure& economic

condition4 +o t"eir (*eec"e( ere varietie( in nature t"at "y t"ey "ad to ,orroed /oan( from

Grameen Bank4 oever& t"e finding( of t"e di(cu((ion on t"e i((ue( ere4

7.7.2 ho borro"ed &icrocredit and hy:

;"e Grameen ,ank a// t"e ,orroer are not /and/e(( and a((et /e((4 ;"ey ere from variou(

economic ,ackground(4 +ome of t"em ere /and/e(( "i/e (ome of t"em "ad a very nomina/

17



/and a((et4 Mo(t of t"e ,orroer are fema/e t"ey ere economic ,ackground ere very *oor4

Mo(t of t"em come from very *oor economic condition t"at t"ey ere (ti// (urviving for t"eir

/ive/i"ood4 Be(ide(& mo(t num,er of t"e ,orroer( in t"e (tudy area a( "ou(e ife4 ;"ey "ad no

*er(ona/ income4 ;"ey ere de*endent on t"eir "u(,and>( or ot"er fami/y mem,er(4 +ometime(

t"e "u(,and( of t"e ,orroer( ere unem*/oyed too4 Moreover& t"e ,orroer>( fami/y income(

ere not (ufficient t"at t"e ,orroer( a/ong it" t"eir fami/y ere (trugg/ing to maintain a

(im*/e /ive/i"ood4 Mo(t of t"e time& t"ey ere "ig"/y (urvive from fundamenta/ rig"t(4 Mo(t of

t"e ,orroer( ere trying to fig"t again(t t"eir *overty4 ;"ey "ad a,i/ity to ork ,ut t"ere a(

not enoug" o**ortunity to ,e em*/oyed4 ;"ey ant to do (omet"ing /ike (ma// ,u(ine(( or go to

*roduction ,ut t"ey "ad no ca*ita/ to do it4 ;"erefore t"ey fe/t need( to ,orro /oan( from

Grameen ,ank to uti/i6e a( ca*ita/4

) ,orroer>( (tatement ("ou/d ,e *re(ented "ere t"at e<*/ain( "ic" "ave inf/uenced "er to

,orro microcredit4 a(ina ,egum i( o/d ,orroer )uk*ara Branc" "e $oin( t"e

GB1FF24er"u(,and u(ed to try to earn ,ut "e a( "e/*/e(( 4 Becau(e "e a( a day /a,or t"at

mo(t of t"e day( "e did not get any ork4 ;"o(e day( e u(ed to ,orroed food from ot"er( . +"e

anted to (u**ort "er "u(,and t"roug" earning money (o ("e take t"e /oan from GB1&2!&!!!

t"ou(and taka and *urc"a(e auto4 ;"erefore I fe/t need to ,orro credit4

)not"er (tatement ("ou/d ,e inc/uded "ere4 ;"e (tatement a( de/ivered ,y +afia ,egum ne&

,orroer of Grameen Bank of t"i( Branc"4 +"e $oin( t"e GB 2!!14 +"e take( t"e /one from GB

9!&!!! t"ou(and taka (tart a (ma// ,u(ine(( /ike g/o((ary ("o*4 +"e run t"e ,u(ine(( (ucce((fu//y

and reduce( *overty4 +o I fe/t need to ,orro credit4

7.7.7 ho "ere the Fsers of the Credit:

It i( o,(erved t"at regiona/ environment and cu/ture decided t"e nature of u(er( of microcredit4

;"e mo(t of t"e time( it i( (een t"at fema/e ,orroer( ere not direct u(er( of credit4 Rat"er t"eir

"u(,and( or ot"er ma/e mem,er( of t"e fami/y "ave u(ed t"e credit4 ;"e 0ue(tion i( "y t"e

fema/e ,orroer( did not u(e creditQ ;"e an(er( from t"e re(*ondent( ere

18



In t"e (tudy area fema/e( are not "ig"/y encouraged to ork out(ide t"e "ou(e4 ;"e (ocieta/

*eo*/e do not take it in a good vie t"at omen ("ou/d do ,u(ine((4 ;"erefore& de(*ite of "aving

intere(t to ork out(ide& fema/e ,orroer( are not a//oed ,y t"eir "u(,and( or ot"er( to do it4

+ometime( t"e fema/e are not a/(o intere(ted to ork out(ide4 )( t"e ,ank do not *refer ma/e( to

give /oan( t"en t"e ma/e( $u(t u(e t"eir ive( or ot"er fema/e mem,er( to get /oan(4 ;"e fema/e(

a/(o do it from t"eir con(ciou( mind&

7.7.8 hy microcredit from Grameen Bank:

;"ere a( a 0ue(tion t"at "y t"e re(*ondent( did c"oo(e Grameen Bank4 ;o an(er t"e

0ue(tion& t"e re(*ondent( de(cri,ed many difficu/tie( of ot"er (ource( of getting /oan4 )ccording

to t"eir vie& t"ere ere many com*/e<itie( in forma/ ,anking (ector( t"at t"ey did not getintere(ted to ,orro /oan( from t"o(e (ource(4 %or e<am*/e& t"e "ig" intere(t rate& maintaining

forma/itie(& no ea(y acce(( to t"e ,ank& to ("o document a( */edge of (ecurity& /engt"y

*roce((e( etc4 %or t"o(e rea(on t"e ,orroer( did not ant to get from t"o(e (ource(4 Rat"er t"ey

/ooked for a */ace from "ere t"ey cou/d get /oan in an ea(y ay4 ?n t"e ot"er "and& t"e *oor

vi//ager( did not find t"e(e difficu/tie( in Grameen Bank4 ;"at>( "y t"ey ere intere(ted to

,orro money from t"i( ,ank &

) (tatement of a ,orroer ("ou/d ,e cited "ere "ic" de(cri,e t"e t"inking of *oor vi//ager(a,out forma/ ,anking (y(tem and Grameen Bank4 It a( ,ank in ton( are t"e ,ank of ric"e(&

not for u(4 ;"ey give very ,ig /oan( to t"e ric"e( a( t"ey can get a e// amount of return from

t"em4 But e are em*ty4 )( our demand i( (ma// e cannot give t"em a ,ig return4 +o "y can

t"ey give u( a /oan4 ?n t"e o**o(ite (ide& Grameen ,ank i( a ,ank for *oor &

)not"er (tatement a( /ike t"at& “t"e ,ank officia/( come to our door(4 @e "ave not to do trave/

to t"e ,ank aut"ority for /oat"e (tudy found anot"er factor t"at contri,ute( to c"oo(e Grameen

,ank for micro-credit4 It a( /ike t"at (ometime( t"e *oor vi//ager( did not fee/ t"e im*ortance to

,orro a /oan4 In t"i( regard& t"e ,ank officia/( ent to t"e door of *oor *eo*/e4 ;"ey tried to

motivate t"e *oor vi//ager( t"roug" vi(iting t"eir door(4 )( a re(u/t t"ey cou/d fee/ t"eir need(

and urgency to ,orro credit4

19



7.7.! )o" the Credit Fp$rades borro"ers Socia# ifesty#e:

Borroer>( (ocio-economic (tatu( i( a((ociated it" t"eir income4 )( money i( /inked it"

overa// ,etterment of "uman /ife t"e (tudy aimed to kno t"e *rofi/e of (ocio-economic

im*rovement of t"e ,orroer(> after uti/i6ing microcredit4 ;"e (tudy found t"at microcredit

"e/*ed t"e ,orroer( to rai(e t"eir income4 )( a re(u/t t"ey "ave im*roved t"eir (ocio-economic

*rofi/e4 ;"e *artici*ant( in %ocu( Grou* Di(cu((ion rai(e t"eir voice( on ,e"a/f of t"eir (ocio-

economic im*rovement t"roug" microcredit uti/i6ation4 It i( o,(erved from t"e finding( of t"e

(tudy t"at t"e fema/e( "o avai/ed t"e faci/ity of microcredit fina//y got (ocio-economic

im*rovement4 )/ mo(t a// of t"e *artici*ant( argued t"at t"ey "ad a /o /eve/ of (ocio-economic

*rofi/e ,efore receiving credit "i/e it gradua//y increa(e to medium /eve/ and in (ome ca(e( to

"ig" /eve/ of (ocio-economic advancement after getting microcredit faci/ity4

Chapter H

indin$s (ecommendations and Conc#usion

8.1indin$s:

;"e (*ecific finding of t"e (tudy are given ,e/o-

GB Microcredit *rovide( /oan for income generating activitie( ,ut it doe( not fu/fi// t"e

initia/ ca*ita/ re0uirement4

Microcredit *rogram me increa(e( (aving( among(t t"e ,orroer( a/(o (aving( money

can ,e "e/*fu/ to ,orroer( for t"eir future4 Mo(t of t"e Borroer of GB& )uk*ara Branc" & t"en found t"at& t"ey "ave */ace and

mem,er are taking Ba(ic /oan for Grocery ("o*& +ma// Bu(ine((& %/oer( Garden& ,uy

rick("a& 7tc4

20



;"e Grameen Bank& )uk*ara Branc"& mem,er are 0uite im*rove( t"eir omen

em*oerment& economic em*oerment and u*grade (ocia/ /ife (ty/e4

8.2 (ecommendations:

ere are (ome recommendation( for effective/y ork out of Grameen Bank for *overty reduction

of )uk*ara Branc"

Grameen Bank )uk*ara Branc" ("ou/d rai(e t"e /oan (i6e in order to cater t"e

re0uirement( of entre*reneur(4 ;"e ,ranc" ("ou/d mea(ure t"eir need( under (*ecific

*ro$ect(4

Be(ide(& t"e rate of intere(t ("ou/d decrea(e in de(cent /eve/ and t"e forma/itie( ("ou/d ,eea(ier to under(tand to entre*reneur(4

5oan recovery ("ou/d ,e in time4 %unding organi6ation i( (ugge(ted to de(ign a unified

(y(tem for t"eir recovery *rogram( (o t"at t"e ,orroer can ea(i/y *ay t"eir in(ta//ment

it" t"e intere(t amount out of return from inve(tment ,orro4

;"e inten(ive entre*reneur("i* deve/o*ment training ("ou/d *rovide for *otentia/

entre*reneur( come out and act *ractica//y for t"e (ocio-economic deve/o*ment of t"e(e

area4

;o im*rove t"e (ki//( of omen entre*reneur(& management deve/o*ment training

*rogram on "o to (tart& run& "o to /ead and manage (ma// enter*ri(e or "o to ,u(ine((

*/an identify different (te* of formu/ating a */an etc4 again effectivene(( of management

deve/o*ment *rogram( de*end( on fundamenta/ education of omen entre*reneur(4

GB ("ou/d c"ange t"eir *o/icy regarding eek/y in(ta//ment4 Mo(t of t"e /oan (ugge(ted

t"at eek/y re*ayment ("ou/d (tart at /ea(t 9 eek( after it( di(,ur(ement4

In order to a//eviate t"e *overty& GB ("ou/d give more em*"a(i( on t"e (e/ected area(4 Int"at ca(e& t"eir *rogram( i// ,e more (u(taina,/e and ,eneficia/ a( e// for t"e

,orroer(4

21



8.7 Conc#usion:

;"ere i( a c/o(e re/ation("i* ,eteen micro credit *rogram of Grameen Bank and *overty

reduction4 Mo(t of t"e countrie( are im*/ementing micro credit *ro$ect and *rogram a( a mea(ure

of *overty reduction4 ;"i( ou/d "e/* to ac"ieve community deve/o*ment4 ;"e re(*ective

countrie( "ave ac"ieved a great dea/ of (ucce(( in uti/i6ing micro credit a( a too/ for *overty

reduction4 Grameen Bank "a( (ome certain /imitation (uc" a( /ack of fund(& /ack of initiative( in

creating financia/ in(titution& a,(ence of /ega/ regu/atory frameork for *ertaining micro credit

in(titution& a,(ence o regu/atory frame ork& /ack of conce*tua/ c/arity4 Government a/ay( trie(

to (trong/y "and/e and overcome to t"e(e *ro,/em(4 Becau(e mo(t of t"e deve/o*ing countrie(

/ike Bang/ade("& micro credit i( mo(t/y nece((ary and im*ortant too/ for *overty reduction and to

create for (e/f em*/oyment4 ;"e government i( */aying a ma$or ro/e in deve/o*ment of t"e micro

credit (ector ,y ay of o*erating it( on micro credit *rogram& creating micro credit (u**ort

in(titution& encouraging ,ank to undertake micro credit (c"eme4

22



Grameen ;ec"no/ogy i( no e// knon a// over t"e or/d for it( effectivene(( in reac"ing t"e

*oor and (erving t"em it" credit4 More t"an 2:! microfinance *ro$ect( in : countrie( of t"e

or/d& irre(*ective of t"eir /eve/ of deve/o*ment& are no fo//oing GB a**roac" in t"eir effort(

*overty reduction4

)uk*ara& +avar Branc" i( t"e more (ucce((fu/ Branc" of Grameen Bank4 )nd )uk*ara Branc" i(

*/aying a vita/ ro/e of *overty reduction in t"at area4

8.8 (eference:

14 )nnua/ re*ort of Grameen Bank 2!19424 ),ed& %44 2!!94 ;racking Poverty t"roug" Micro %inance4

34 Dr4 Profe((or4 Mi"ir Lumar Roy “Micro-credit and Poverty Reduction in

Bang/ade("”4

94 Internet edition of annua/ re*ort 2!13-2!19 of Grameen Bank4

ebsite:

14 4goog/e4com

24 4grameen,ank4com

34 4grameen4com94 4grameen-info4org

:4 4econ,i64de

4 4iki*edia4com

23

http://www.google.com/

http://www.grameen.com/

http://www.econbiz.de/

http://www.grameen.com/

http://www.econbiz.de/

http://www.google.com/

Micro-credit and Poverty Reduction of Grameen Bank

Documents

Transcript of Micro-credit and Poverty Reduction of Grameen Bank