Welcome To Our PresentationGroup Member

Name ID

Sanjana Islam M1516005 Sahzahan Mia Shazo M1516009

Israt Sharmin M1516025 Md. Norul Basor M1516031

Rana Sharmila Nuzla M1516075

DEBATE ON MICROCREDIT OF GRAMEEN BANK

Presentation Topic

Microcredit It starts its journey from 1983. Starts with 27 women.

Debated Issue Interest rate, impact ,women empowerment, education, grouping procedure, membership procedure and poverty reduction.

Background of the Study

Broad ObjectivesTo analyze the Debated issues on Microcredit of Grameen Bank

Specific ObjectivesTo analyze the interest rate, impact and membership process of Grameen Bank in Bangladesh.

Objectives

whether the interest rate of Grameen Bank is high in the market

impact of Grameen Bank’s loan in a particular place

Membership Procedure and

Group lending

Research Question

Scope:Grameen Bank is one of the largest NGO in Bangladesh.

LimitationTimeCostSample sizeOrganizational privacy

Scope and Limitation:

 Finance plays a crucial role in the development of a country. It adds fuel for the investors.

a small size financial institution is also engaged with million dollars.

Microcredit was born to reduce the limitation of formal banking sector and aggression of local loan shark.

MICROCREDIT

Besides building financial strength of the poor women by encouraging them to build up significant amount of personal savings, borrower deposit is also a very important element in Grameen Bank.

Grameen Bank (GB) has inverted usual banking practice by removing the need for collateral and created a banking system based on mutual trust and participation.

Grameen Bank Model,

Grameen Bank Credit methodology means taking credit to the very poor in their villages by means of the essential elements of the Grameen credit delivery system. Grameen Bank credit delivery system has some features.

Microcredit Methodology of GB

Bangladesh became the first country in the world to establish the MRA as a separate entity under a separate act to license, monitor and oversee the MFIs

Current Status of Microcredit

LITERATURE REVIEW

Research Design

Sample Selection

Survey Method

Living standard index

Research Methodology

Basic Analysis

DEMOGRAPHIC ANALYSIS

MICRO BANKING ANLYSIS

The rate of interest of Grameen Bank is reasonable The procedure of obtaining loans from Grameen Bank is easier Operational assistance received from GB is helpful to run the

business Loan terms flexible Grameen Bank has not made you more poor Grameen Bank alleviates poverty Grameen Bank is sufficient for required loan You are not caught in the net of loan Do you feel you are an owner? Do you feel any group pressure?

CONCEPTION ANLYSIS

INTEREST RATE ANLYSIS

IMPROVEMENT ANALYSIS

Income Expenditure Savings Property value

STATISTICS OF CHANGE IN FOUR PARAMETERS

94.79%

91.67%

67.71%

Monthly income Monthly expenditure Monthly savings

Group pressure No direct inspection No dramatic change in education and age of early marriage Competition from agent Lack of consideration for the loan defaulters It has reached to the furthest region of the country Women are empowerment Poverty level has reduced

Findings

Microcredit has significant positive relation with the life standard index.

Although 38% of the surveyed people strongly agree but majority 54% had confusion regarding the membership process of Grameen Bank.

Periodic installment payment should be exempted from interest calculation. Interest should be charged on the utilized portion only. Payment frequency should be customized based on the size of the loan.

Conclusion

There are some negative issues of Grameen Bank

Recommendation

ANY QUARY?

THANK YOU