Term paper

On
Microcredit
Course name: Principles of Macroeconomics
Course code: ECO 242
University of Information Technology and Sciences (UITS)
Submitted to:
Janifar Alam
Lecturer, UITS
Submitted by:
Group name: Zarar

I.D#
11410199

Name
Shabanul Kumree Titly

11410196

Sirina Binta Eklas

11410306

Jisiya Akther

11410355

Muhammad Toriqul Isam

11430004

Md.Mhabubur Rhaman

Date of Submission: 5th December, 2012

Ms. Janifar Alam

Lecturer, UITS
Business School, Kakrail Campus
Letter of Transmittal
Dear Madam,
With great pleasure we are submitting our Term paper on Microcredit we have found this term
paper as of informative, beneficial as well as insightful. We have tried our level best to prepare an
effective & creditable term paper. Here we have gathered information through different sources
such as annual reports and websites.
We would be glad if you kindly give us some time to present our term paper. Therefore we hope you
will find this term paper worth all the effort we have put in it.
Sincerely Yours,

Shabanul Kumree Titly

Shirina Binta Eklas

Jisiya Akther

Muhammd Toriqul Islam

Md. Mahbubur Rahman

 Glossary:

MRA: Microcredit Regulatory Authority

MFI: Microfinance Institution
NGO: Non-governmental Organization
PKSF: Palli Karma -Sahayak Foundation
IPRSP: The Interim Poverty Reduction Strategy Paper

Bibliography:

Websites:
www.mra.gov.bd
www.wikipedia.org
NGO-MFIs in Bangladesh Volume 7, 2010

Executive summary
Microcredit, in its wider dimension known as microfinance, has become a much favored
intervention for poverty alleviation in the developing countries and least development countries.
Many achievements are claimed about the impact of microfinance programs, and an outside
observer cannot but wonder at the range of diversity of the benefits claimed. Microcredit is the
extension of very small loans (microloans) to impoverished borrowers who typically lack collateral,
steady employment and a verifiable credit history., microfinance is seen as one of the significant
approaches to poverty alleviation.. Microfinance is rapidly shifting from a niche product to a
globally recognized form of finance and becoming more sophisticated and diverse. Bangladesh
microfinance sector is mature now and its assets constitute around 3 percent of GDP in 2010.During
the late 1970s, when the 'Jobra' experiment was underway under Professor M. Yunus, the
DhekiRinProkolpa was initiated by the Bangladesh Bank in collaboration with the Swanirvar
Bangladesh, and several other pilot schemes were initiated by a handful of the NGOs which were
active then. At that time, it was difficult to conceive that these initiatives would lead to a major
microcredit movement, which would make Bangladesh known to the rest of the world. Today within
the global coverage of microcredit Bangladesh's achievement stands out prominently. According to
the Microcredit Summit Campaign Report, 67.6 million families have been reached by microcredit
in 2002 around the world. Out of that 59.6 million clients are in Asia and Bangladesh alone covered
13 million clients (22.6%). The world community has appreciated the contributions of Bangladesh
in the field of microcredit, which was evident in the recently held Asia Pacific Region Microcredit
Summit (APRMS) Meeting of Councils in Dhaka, Bangladesh from 16-19 th February, 2004
arranged by Palli Karma -Sahayak Foundation (PKSF), in association with the Microcredit Summit
Campaign based in Washington D.C. More than 1200 participants from 47 countries from different
parts of the globe pledged their firm commitment to take forward the microcredit movement.
Bangladesh government has also placed adequate emphasis on microcredit programs. The Interim
Poverty Reduction Strategy Paper (IPRSP) of the government of Bangladesh has outlined some
important roles for microcredit. The policy makers have recognized the importance of microcredit
in Bangladesh and the present government has pledged its support to this program. Recognizing the
importance of microcredit in poverty alleviation, the major challenge now, the UN has declared
2005 as the UN International Year of Microcredit.

Table of contents
Topics

Page no

1. Introduction
1.1 Microcredit
1.2 Evolution of microfinance institution in Bangladesh

1-2
2-3

1.3 Microcredit regulatory authority of Bangladesh (MRA)

3-4

1.4 Grameen bank

2. History
2.1 Early beginning

2.2 Modern History

3. Microcredit in Bangladesh
3.1 Beginning of microcredit in Bangladesh

6-7

3.2 State of microcredit in Bangladesh

7-8

4. Microcredit institutions of Bangladesh

4.1 Licensing status of NGO- MFIs in Bangladesh

4.2 Selected indicators of NGO- MFIs in Bangladesh

10-11

4.3 Growth of Top NGO MFIs in Bangladesh

12

5. Impact of Microcredit in Bangladesh

5.1 Social and other development Impact

13

5.2 Economic impact of Microfinance

13-14

5.3 Activities of Borrower financed by microcredit institutions in 14-15

Bangladesh
15-17
5.4 Major issues
6. Conclusion

17

Term Paper
On
Microcredit