Grameen bank and public perception
The borrowers of the bank own Grameen Bank. The main goal is to make credit available to the rural poor mostly women in struggle against poverty. In doing so, borrowers are given without collateral and without legal instruments. Grameen Bank loans are paid on a weekly basis.
In 2002, Grameen Bank introduced its struggled Member Program, especially designed to lend money to the beggars to find a dignified livelihood, they are offered interest free loans. By the end of January 2007, cumulative members under this program reached 80912. A total to Taka 81.98 million has so far has been disbursed.
In an effort to encourage members to educate their children, Grameen offers scholarships to children of its members, By January 2007,35,494 students (both boys and girls) have received scholarships equal to US $ 45 Million.
Origin of the report
Now a day, education is not just limited to books and classrooms. In today’s world, education is the tool to understand the real world and apply knowledge for the betterment of the society as well as business. From education the theoretical knowledge is obtained from courses of study, which is only the half way of the subject matter. Practical knowledge has no alternative. The perfect coordination between theory and practice is of paramount importance in the context of the modern business world in order to resolve the dichotomy between these two areas. Therefore, Dept. of Management Studies, University of Dhaka, offers an opportunity for its potential business graduates to get 45days practical experience, which is known as “Internship Program”. For the competition of this internship program, the author of the study was placed in a bank namely, “Grameen bank”. Internship Program brings a student closer to the real life situation and thereby helps to launch a career with some prior experience.
This paper is entitled “ Grameen bank and public perception ” originated from the fulfillment of the internship program. For the internship program, each student is attached with an organization. My internship was at Grameen bank head office Mirpur-2, Dhaka. During my internship, I had to prepare a report under the supervision of Dr. Md. Sahiduddin Ahmad, Professor, Dept. of Management Studies, and University of Dhaka.
Objectives of the Study:
Present an over view of Grameen bank
Analysis the Lending procedures maintained by Grameen bank
Observe principal activities of Grameen bank
Evaluate performance of Grameen bank.
Measure the actual position in classified Loan and provisions maintained by Grameen bank
Compare the conditions among the different micro credit organization in Bangladesh.
Evaluate the success of credit operations.
Identify problems in credit operations of Grameen bank.
Recommend suggestions for the successful Operations of Grameen bank.
For preparing this paper, I used both Secondary and Primary data.
Collection of Primary Data:
Many of the data and information were collected from my practical experience and queries from the Employees, members of Grameen bank, employees of other micro credit organization and people of low-income group. while doing my internship at Grameen bank. Information and data regarding overview of the Grameen bank, interest rates & charges, credit operations, performance measurement in Lending, credit policies, Loan Agreement etc. were collected from the Grameen bank head office and branch office and center of Grameen bank
Collection of Secondary Data:
Data regarding the Credit operations, Performance Evaluations and overall activities of Grameen bank were collected from secondary sources like: Annual Reports, register, Manuals and Publication of Grameen bank., Grameen bank library, Grameen bank’s website, News paper etc. were the major sources of secondary date.
Limitation of the study
The main problem faced in preparing the paper was the inadequacy and lack of availability of required data. This report is an overall view of Grameen bank and public perception. But there is some limitation for preparing this report. Firstly this bank is very vast so there are huge amount of data so it is difficult to choose the sample and work according to that mannered. Secondly when I was doing my internee then lots of intern there and so it is difficult to get all information because of their busy time schedule. Thirdly, I only visited 3 to 4 center and three districts so it is difficult to draw overall conclusion about a particular subject matter. With all of this limitation I tried my best to make this report as best as possible. So readers are requested to consider these limitations while reading and justifying any part of my study.
Chapter 2:OVERVIEW OF GRAMEEN BANK
About Grameen Bank
Walk into any bank and ask for a loan and the bank manager will pull out the forms and start asking you about the value of your car, your house, your salary. Before the bank will loan you money, it wants to know in effect whether you already have lots. In Bangladesh, a unique institution called the Grameen Bank is pioneering a different approach. It’s a bank that lends only to the rural poor. Often its borrowers lack even a change of clothes or a roof sturdy enough to keep out the rain. And yet an astonishing ninety-eight per cent of them pay back their loans.
Bangladesh is Grameen’s experimentation site where its Economic & Social Development Model is developed, tried and fine-tuned. The vision is to “replicate” an appropriately customized variation of this model in each and every country of the world where poverty exists. To this end, Grameen Trust was set up to provide the seed capital, training, technical assistance and experience-sharing to economists and bankers of other countries wanting to emulate Grameen Bank’s system.
The Grameen Bank is a micro finance organization and community development bank started in Bangladesh that makes small loans (known as micro credit) to the impoverished without requiring collateral. The system is based on the idea that the poor have skills that are under-utilized. The bank also accepts deposits, provides other services, and runs several development-oriented businesses including fabric, telephone and energy companies. The organization and its founder, Muhammad Yunus, were jointly awarded the Nobel Peace Prize in 2006.
Origin of Grameen Bank
Muhammad Yunus, the bank’s founder, earned a doctorate in economics from Vanderbilt University in the United States. He was inspired during the terrible Bangladesh famine of 1974 to make a small loan of $27 to a group of 42 families so that they could create small items for sale without the burdens of predatory lending. Yunus believed that making such loans available to a wide population could ameliorate the rampant rural poverty in Bangladesh.
The Grameen Bank (literally, “Bank of the Villages”, in Bangla) is the outgrowth of Muhammad Yunus’ ideas. The bank began as a research project by Yunus and the Rural Economics Project at Bangladesh’s University of Chittagong to test his method for providing credit and banking services to the rural poor. In 1976, the village of Jobra and other villages surrounding the University of Chittagong became the first areas eligible for service from Grameen Bank. The Bank was immensely successful and the project, with government support, was introduced in 1979 to the Tangail District (to the north of the capital, Dhaka). The bank’s success continued and it soon spread to various other districts of Bangladesh and in 1983 it was transformed into an independent bank by the legislature of Bangladesh. Bankers from Shore Bank, a community development bank in Chicago, helped Yunus with the official incorporation of the bank under a grant from the Ford Foundation. The bank’s repayment rate was hit following the 1998 flood of Bangladesh before recovering again in recent years.
The Bank today continues to expand across the nation and still provides small loans to the rural poor. Its success has inspired similar projects around the world.
Three core objectives of Grameen bank
- Grameen bank wants Alleviation poverty from the root level of Bangladesh.
- Empowering the women.
- Create employment sectors basically village level.
Ten indicator of access poverty level by grameen bank:
Every year GB staff evaluates their work and check whether the socio-economic situation of GB members is improving. GB evaluates poverty level of the borrowers using ten indicators.
A member is considered to have moved out of poverty if her family fulfills the following criteria:
- The family lives in a house worth at least Tk. 25,000 (twenty five thousand) or a house with a tin roof, and each member of the family is able to sleep on bed instead of on the floor.
- Family members drink pure water of tube-wells, boiled water or water purified by using alum, arsenic-free, purifying tablets or pitcher filters.
- All children in the family over six years of age are all going to school or finished primary school.
- Minimum weekly loan installment of the borrower is Tk. 200 or more.
- Family uses sanitary latrine.
- Family members have adequate clothing for every day use, warm clothing for winter, such as shawls, sweaters, blankets, etc, and mosquito nets to protect themselves from mosquitoes.
- Family has sources of additional income, such as vegetable garden, fruit-bearing trees, etc, so that they are able to fall back on these sources of income when they need additional money.
- The borrower maintains an average annual balance of Tk. 5,000 in her savings accounts.
- Family experiences no difficulty in having three square meals a day throughout the year, i. e. no member of the family goes hungry any time of the year.
- Family can take care of the health. If any member of the family falls ill, family can afford to take all necessary steps to seek adequate healthcare.
The 16 Decisions of Grameen Bank:
Grameen bank have been taken the following 16 decisions
We respect the four principles of the Grameen Bank – we are disciplined, united, and courageous and workers – and we apply them to all our lives.
We wish to give our families good living standards
We will not live in dilapidated houses. We repair them and work to build new ones.
We cultivate vegetables the whole year round and sell the surplus.
During the season for planting, we pick out as many seedlings as possible.
We intend to have small families. We shall reduce our expenses to a minimum. We take care of our health.
We educate our children and see that they can earn enough money to finance their training.
We see to it that our children and homes are clean.
We build latrines and use them.
We only drink water drawn from a well. If not, we boil the water or we use alum.
We will not accept a marriage dowry for our son and we do not give one to our daughter at her marriage. Our center is against this practice.
We cause harm to no one and we will not tolerate that anyone should do us harm.
To increase our income, we make important investments in common.
We are always ready to help each other. When someone is in difficulty, we all give a helping hand.
If we learn that discipline is not respected in a center, we go along to help and restore order.
We are introducing physical culture in all centers. We take part in all social events.
16 Decisions: Implication for Credit Programmers:
Self-help and mutual aid
Autonomy of the bank
Subsidiary/no free services
Respect for social structures/no standard internal by-laws
Replying on one’s own resources/no loans without savings
Representatively and responsibility of leaders
Openness in management and decision-making procedures
Cross-fertilization through exchange of ideas
Micro credit and its application in Grameen Bank
Micro credit is the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. It has proven to be an effective and popular measure in the ongoing struggle against poverty, enabling those. The system incorporates a set of values into the banking system, embodied in Bangladesh by the Sixteen Decisions.
The system is the basis for the micro credit and the self-help group system now at work in over 43 countries. Each group of five individuals are loaned money, but the whole group is denied further credit if one person defaults. This creates economic incentives for the group to act responsibly (such as other members then being able to receive additional loans), increasing Grameen’s economic viability.
In a country in which few women may take out loans from large commercial banks, the fact that most (97%) loan recipients are women is a significant accomplishment. In other areas, Grameen’s track record has also been notable, with very high payback rates-over 98 percent. However, according to the Wall Street Journal, a fifth of the bank’s loans were more than a year overdue in 2001. More than half of Grameen borrowers in Bangladesh (close to 50 million) have risen out of acute poverty thanks to their loan, as measured by such standards as having all children of school age in school, all household members eating three meals a day, a sanitary toilet, a rainproof house, clean drinking water and the ability to repay a 300 taka-a-week (8 USD) loan.
Features of Grameen’s Credit Delivery System:
1. There is an exclusive focus on the poorest of the poor – exclusivity is ensured by –
- Establishing clearly the eligibility criteria for selection of targeted clientele and adopting practical measures to screen out those who do not meet them.
- In delivering credit, priority has been increasingly assigned to women.
- The delivery system is geared to meet the diverse socio-economic development needs of the poor.
2. Borrowers are organized into small homogeneous groups. Such characteristics facilitate group solidarity as well as participatory interaction. Organizing the primary groups of five members and federating them into centers, have been the building blocks of Grameen bank’s receiving system. Emphasis from the very outset is to organizationally strengthen the Grameen clientele, so that they can acquire the capacity for planning and implementing micro level development decisions. The Centers are functionally linked to the Grameen Bank, whose field workers have to attend Center meetings every week.
3. Special loan conditional ties, which are particularly suitable for the poor. These include:
- Very small amounts of loans given without any collateral
- Loans repayable in weekly installments spread over a year
- Eligibility for a subsequent loan depends upon repayment of first loan
- Individual, self-chosen, quick income generating activities, which employ the skills those borrowers already, posses
- Close supervision of credit by the group as well as the bank staff
- Stress on credit discipline and collective borrower responsibility or peer pressure
- Special safeguards through compulsory and voluntary savings to minimize the risks that the poor confront
- Transparencies in all bank transactions most of which take place at center meetings.
4. Simultaneous undertaking of social development agenda addressing basic needs of the clientele. This is reflected in the “sixteen decisions” adopted by Grameen borrowers. There is a need to:
- Raise the social and political consciousness of the newly organized groups
- Focus increasingly on women from the poorest households, whose urge for survival has a far greater bearing on the overall development of the family.
- Encourage their monitoring social and physical infrastructure projects – housing, sanitation, drinking water, education, family planning, etc.
5. Design and development of organization and management systems capable of delivering program resources to targeted clientele. The system has evolved gradually through a structured learning process that involves trials, errors and continuous adjustments. A major requirement to operationally the system is the special training needed for development of a highly motivated staff, so that the decision-making and operational authority is gradually decentralized and administrative functions delegated at the zonal levels downwards.
6. Expansion of loan portfolio to meet diverse development needs of the poor. As the general credit program gathers momentum and the borrowers become familiar with credit discipline, other loan programs are introduced to meet growing social and economic development needs of the clientele. Besides housing, such programs included:
- Credit for building sanitary latrines
- Credit for installation of tube wells that supply drinking water and irrigation for kitchen gardens
- Credit for seasonal cultivation to buy agricultural inputs
- Credit for joint enterprises undertaken by the group and the center
- Finance projects undertaken by the entire family of a seasoned borrower.
The underlying premise of Grameen is that, in order to emerge from poverty and remove themselves from the clutches of usurers and middlemen, landless peasants most need access to credit, without which they cannot be expected to launch their own enterprises, however small these may be. In defiance of the traditional rural banking postulate whereby “no collateral (in this case, land) means no credit”, the Grameen Bank experiment set out to prove – successfully – that lending to the poor is not an impossible proposition; on the contrary, it gives landless peasants the opportunity to purchase their own tools, equipment, or other necessary means of production and embark on income-generating ventures which will allow them escape from the vicious cycle of “low income, low savings, low investment, low income”. In other words, the banker’s confidence rests upon the will and capacity of the borrowers to succeed in their undertakings.
Grameen Bank’s Method of Action:
The Grameen Bank’s method of action can be illustrated by the following principles:
Start with the problem rather than the solution: a credit system must be based on a survey of the social background rather than on a pre-established banking technique.
Adopt a progressive attitude: development is a long-term process, which depends on the aspirations and commitments of the economic operators.
Make sure that the credit system serves the peasants, and not vice-versa: credit officers visit the villages, enabling them to get to know the borrowers.
Establish priorities for action vis-à-vis to the target population: the most poverty-stricken peasants needing production resources, who have no access to credit.
At the beginning, restrict credit to income-generating production operations, freely selected by the borrower. Make it possible for the borrower to be able to repay the loan.
Lean on solidarity groups: small informal groups consisting of co-opted members coming from the same background and trusting each other.
Associate savings with credit without it being necessarily a prerequisite.
Combine close monitoring of borrowers with procedures, which are simple and standardized as possible.
Do everything possible to ensure the system’s financial balance.
Invest in human resources: training leaders will provide them with real development ethics based on rig our, creativity, understanding and respect for the rural environment.
Grameen bank and interest rate:
1. Basic loan 20%decline balance rate
2.Flexible loan 20%decline balance rate
3. Housing loan 8% decline balance rate
4. Education loan 5% service charge only
5.micro enter prize loan 20% decline balance rate but can get after some year
1.personal savings 8.5%
2.double in seven years
3.monthly profit scheme
4.Gps (pension scheme) 12%
5. Loan insurance savings
Grameen Bank has also helped establish a number of related organizations to support its mission, although it has chosen to support them with debt financing rather than assume equity stakes. These organizations are separate legal entities that began as projects and were later spun off. Grameen Bank made loans into a trust fund (the Grameen Fund) from which disbursements were made to the companies. The companies were then expected to pay back the loans at a later stage One of the organizations that expanded and diversified the bank’s activities was the Grameen Krishi Foundation (GKF), which focuses on agriculture and provides loans to groups of farmers owning between 0.5 and 3 acres of land. Since Grameen Bank itself does not loan money for agricultural production, through GKF it is able to do so.Grameen Bank also has helped found 17 Grameen Network companies, which provide basic services that many Grameen Bank borrowers require. They are independent companies that have not received any loans from Grameen Bank and pay regular taxes and duties. By ensuring access to basic services in villages, Grameen Bank has enabled more people to start businesses, and the bank has, in turn, expanded its customer base. In a February 1997 interview (Patel 1997), Yunus discussed the reasons for and benefits of the Grameen Network.
Once you lay down the basis of . . . a network like Grameen, you can think of other things. Telecommunications is a profitable business, so we want to bring cell phones to the villages and make Grameen borrowers telephone ladies who can sell the service in the villages. The poor will become owners of the telephone company—shares will be sold to Grameen borrowers—so that profits go to the poor. The phones, used for long-distance social communications, will be rented out in an income-generating project . . .. Internet-service provider is another project. Solar energy will be provided in villages. The Grameen retirement fund has been started. Grameen is diversifying to make our clients branch out and feel secure. Grameen borrowers to get them out of poverty own all these companies
CHAPTER -3: Management of Grameen bank
Management of Grameen bank:
The management of Grameen Bank is vested in a 13-member board of directors with its chairman appointed by the government. Nine of the 12 directors are nominated from amongst the female members of different centers under its different branches. The head office of the bank located at Dhaka has 9 departments namely, accounts, administration, establishment, training, international program, monitoring and evaluation, service, audit and the managing director’s secretariat. There are also some sections like technology and development, construction, special program and planning.
3.3Summary of Grameen Bank’s Strategy, Risk Management, Growth and Compensation
Chapter 4: FUND MANAGEMENT
Source of fund as on 31st dec.2006:
Financial intermediation indicators (1997-2006) In million
4.3Past Ten Years at a Glance (1997- 2006)
Chapter 5: PUBLIC PERCEPTION ABOUT GRAMEEN BANK
Survey type = sample survey
Type of respondents = Member of Grameen Bank
Total survey = 22 women
District = Dhaka, Faridpur, Munshigong.
Total question asked = 24
From the question I select some of the special features, and they are
Difficulties in getting the loan
In here all the respondents said they got the loan very easy and they did not face any trouble. They were introduced by some of the previous group member or the center manager. It is mentioned that the center manager plays a vital role for collecting the members at the beginning stage, and they go door by door for taking the new members that time.
Work with the people with out future orientation is really difficult and Grameen bank work most of the time with that people.
Here our evidence shows that out of the 22 respondents only 8 of them have the future orientation and they want to do something like business, cattle feeding, and agriculture activities and rest of them have no idea about the next step. So with those aimless people it will difficult to achieve it’s one of the main objects, empowering the woman.
Implementation of the loan amount
Implementation of the loan amount by them is very difficult in the case of socio cultural situation of Bangladesh. Here the women are not allowed for doing any business with out cattle feeding, and so women who want to do some thing most of them are in these criteria. And conversing with the women it is found that most of the case they used as a money channel by the husband. Implementation of loan by the women is very low; the money is given to their husband or father for betterment of the family.
In case of training facilities, the evidence shows that the members who enter the Grameen bank 10 to 20 years ago the got the appropriate training facilities from the Grameen bank and they also told ‘they have to take one month training facilities for getting loan from Grameen bank’ but it is easier now so who are new members of Grameen bank they do not have enough idea about the training facilities and other related issues.
I think it was possible for Grameen bank that time when the limited numbers of members are taken into action. Today the situation is changed there are huge amount of members and it is difficult for the Grameen bank to give close supervision to all of the members
Limitation of thinking
The major portions of the loan taker have no idea about the interest rate because most of them have no numerical knowledge. So it is difficult to Grameen bank to maintain the favorable situation for the loan takers. In Faridpur I saw the interesting picture the member of Polli progoti , Brac, Asa all were the same , they did not know the interest rate also. They only know the installment amount. They do not differ among the micro credit financed organization in same zone. In same zone the Grameen bank takes 20% interest on their loan amount and the rest of them take 25% but many of the people take loan from Asa Brac, Polli progoti etc. the only reason behind it the lacking of awareness.
But it is the responsibility of the center manager to tell the members about their loan structure and also the interest rate. It is true they are busy and they find out new way for presenting the things like ‘if you take 1000 tk. then you have to pay 24 tk. per week’. The main problem of this technique is they cannot differ among the micro credit organization on the basis of their interest rate.
Some expectation from Grameen bank
The members, the borrowers in the same time they also owner but they do not know about their ownership, they only thinking like borrowers. From the survey I find when I tell them about their ownership they feel proud because it is Grameen bank, and they own it.
They want hospital facilities, (Grameen bank provide hospital facilities but most of them do not know about it, and it is not available in all the location)
Some of them want more loans in the initial stage but it is impossible for Grameen bank to provide more loans in the initial stage for the lacking of security of repayment.
Some want agricultural facilities from the bank.
Some tell about social welfare.
Some tell for decreasing the interest rate when I tell them about that, they also fell satisfied when they hear their bank takes 20% and other takes 25%.
Grameen bank tries to reduce poverty by giving loans and if they want to eliminate poverty then I say they have to increase the social awareness and responsibility. Only loan cannot eliminate poverty, with loan proper take care of the implementation of that loan is also necessary.
Empowering the women is possible when the men like that way, so training not only the members but also the husband of the member is also required. But it is not the one day process, and I thing it is already started by Grameen bank, and we all finished the rest of the task.
Grameen bank relieves the people who take loans from MOHAJON at 120% to 240% interest rate, i do not say the interest rate of Grameen is low but I want to say it saves at least 100% extra payment of that poor people
Survey type = sample survey
Type of respondents = Income group up to taka 5000(income of the full family)
Total survey = 20 women
District = Dhaka, Faridpur,
Total question asked = 12
Garmeen Bank and the people
The evidence shows 100% people hear about Grameen Bank more or little bit but not all the person in this group wants to take loan from Grameen Bank. Here we find only 60% people want to take loan from Grameen bank, the others are not interested.
The causes are
Some have jobs (garments jobs)
Some want to talk with her husband for taking their decisions but they have no personal intension to take the loan.
Some do not like interest business because Islam prohibits it
Some do not like to borrow money from any bank
Some fear about the repayment of the loan
Some are already engaged with other NGO so they habituated with that’s NGO’s culture
Within the sample I find 90% of the people do not try to get loan from Grameen bank and 10% people try and failed for certain purpose, the main lacking of them, they have no house and house owner does not want to give them guarantee.
I think in semi urban area this is the main problem faced by the loan wanted person. Semi urban area like saver, Hamayetpur, Manikgonj most of the people do not have their own house. Without piece of land Grameen Bank does not provide loan because
Instability of the people
Repayment problem or installment problem
I think Grameen Bank has to develop new idea to launch in town for capturing the floating people in scope of Grameen loan scheme.
Only 5000 tk but the outcomes shows 45% people are happy with this income and rest want to earn more. I think Grameen bank has to focus that kind of people who wants to earn more money by taking loan. In this case the greater possibility to implement the fund, because they have strong desire to live and improve
Within 45%(75% people do not want to take loan and rest 25%want to take loan) but it is a question what they will do that loan, it is habitual or not.
In Bangladesh habitual loan taking tendency is available so it should be considered all kind of micro credit organization if they want proper implementation of the funds
Income group up to taka 5000 is the target people for Asa, Grameen bank and many other NGO. They want members for giving loan, some time loan taker also seek them for taking loan. If the micro finance organization means poverty alleviation of their main objective then it is their duty to find out the poor people, and give them loan and proper training and help them to change their fate
Employees of the Grameen bank without headquarter
Location—-Faridpur, Dhaka, Munsigang
Total respondent—–20 people
Our evidence shows satisfaction of Grameen bank employees about working environment are high because of several reasons-
- The Grameen bank gives right work for the right position
- Every one can take decision according to their ability, and they can also give sessions to their boss
- Good behavior and response of the superior person, and friendly co-workers
- Flexible working timetable
- Everyone is responsible for his or her jobs
Grameen bank takes some unique idea for the increase the responsibility and provides the appropriate benefit to the employees. it select people wisely. I can give an example –
If any one wants to be a center manager then he or she has to pass HSC Examination and Grameen takes that people who are actually pass the HSC. Examination not more than that, and give the highest remuneration package according to their quality.
Behavior of the superior person in Grameen bank is good to their employees, because they got training for play that job appropriately and the managers are strongly control from the upper level management and I see it is a culture of Grameen bank that every manager takes subordinate idea and after then he takes decision and tell decision to the subordinates.
Coworker behaves like friends and they give mental support to the others and they can share their feelings among them. I saw their satisfaction level about co-worker is high and they have positive feelings about this matter.
Most of the employees are satisfied about their remuneration package, the Grameen blank employees get the similar salary scale as any govt employees with every benefit. This is the main case about their satisfaction. And I think they fell secure in Grameen bank for their future protection. In Asa and Brac I say they are less secure than Grameen bank because they have no future security on benefits.
In survey I saw micro credit is not popular to all the employees because the task is not so easy, and it is very difficult to adjust with the situation. Grameen bank is popular organization all over the world, and they fell proud for this reason and they love Grameen bank. Some of them think they work in Grameen bank and so it is their duty to love it. But major portion say they truly love Grameen bank
Employee of the micro finance sector
Survey type-sample survey
From the survey there are several outcomes. The outcomes are-
Every employee of other micro credit sector hear about Grameen bank, because it is their competitor and they follow the concept of Grameen bank, but they take some modification of the subject matter.
There are mixed feelings about Grameen bank some told me it is a good and disciplined organization, and father of micro credit and only this reason novel prize is appropriate for Grameen bank. But some told it is providing the loan cannot alleviate their view poverty. Only social awareness can remove poverty. They said to me micro structure is not appropriate for the very poor level, because it creates problem of repayment. They told me middle class is appropriate for micro credit whose has the ability to manage the credit.
Some of them do not like micro credit job because they have to do hard and routine work daily. And it is very difficult to collect money from the poor people. They told me some time they face unexpected situation, like one member cannot pay his or her installment today. Then it is very difficult to adjust the situation.
In the micro credit organization they like Grameen very much because they told Grameen has good remuneration package to their employees. And if any opportunity is raised to go to Grameen then they will come Grameen for their future security and their job security.
They told me some draw back of Grameen bank the drawbacks are-
Ø Grameen bank has to improve the social responsibility
Ø They told employees of Grameen bank, have to work at night it should be changed
Ø They told some loan strategy of Grameen bank is not appropriate, like education loan, housing loan.
Ø They told interim loan is not good.
Ø Some told about interest rate.
Ø They told weekly payment is some cases is not good.
Ø Grameen bank has no computer in the branch
Ø Savings should be optional
Ø Some told Gramen bank is unsocial.
The most of the surprising things are that they have no proper idea about Grameen bank, they hear little bit about Grameen bank from their member. Most of the cases they make their own idea about Grameen bank. I can give an example, I asked them about Grameen bank’s interest rate they told me they do not know, and they have no time to enquiry the other organization.
I think, as a compotators the Brac, Asa, and Grameen bank should be know each other. It can help to generalize the new idea what can create the new opportunities for the poor people and for the over all Bangladesh.
Grameen now enter the second generation, it diversifies its activities by its sister concern. It is now more experienced and changed its moods of operation. The founder of Grameen tells about the social business, and Grameen sister concern is already engaged in that business. But the main difficulties of Grameeen is controlling the overall situation and maintaining the harmony relationship among the organization. I wish Grameen can do that in future, because they are Grameen family and they are for the poor.