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
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
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
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