Proposal for the Internship Report

Semester: Summer: 2018

Title of the Report: '' Microcredit Loan Disbursement System of Grameen Bank''

Rationale for Selecting the Report:

Internship program offers an opportunity to know the environment of a particular organization.

Through this program, I will be able to develop and refine my theoretical knowledge gained
during my stay in the university. This program will provide an exciting opportunity to experience
and learning, cultural behavior of employee and management, elegance of an organization,
which will bridge the gap between theoretical and real practical experience. A perfect
consideration between theory and practice is important in the context of modern business world.
Therefore the Jagannath University arranges internship program as a partial completion of
MBA(Evening) program. Internship program brings students closer to the business theory and
practical and thereby help them to substantiate their knowledge so that they can prepare
themselves to start a fruitful career. As I am a student of Accounting & Information Systems
that’s why I wanted to do my internship in a Bank or any accounts & finance related company.
Currently I’m doing my internship in Grameen Bank in the International Program Department ,
Mirpur 2, Dhaka. As it is the Head Office of Grameen Bank most of its activities are totally
different from the Branch Office.
International Program Department is help to the Internship Student. This report has been
presented based on my practical observation and experience gathered from the Head office and
Branch office and the focus is given on the Microcredit Loan Disbursement System of Grameen
Bank.
So, I therefore, chose my affiliation topic ''Microcredit Loan Disbursement System of
Grameen Bank''
Background of Grameen Bank:

In August 1976, Dr. Muhammad Yunus, then Head of the Department of Economics at the
University of Chittagong, started a project called Grameen Bank project. In 1979, the project
expanded in to Tangail in corporation with Bangladesh Bank. In October 1983, it was established
as an independent Bank. Grameen Bank was born in village of Jobra. Today Grameen Bank is a
huge micro credit institution. It is larger than many Commercial Banks in Bangladesh. It has
been replicated in more than 100 countries of the world.

Grameen Bank is owned by the borrowers of the Bank. The main goal is to make credit available
to the rural poor, mostly woman, in the struggle against poverty. In doing so, borrowers are given
loans for income generating purposes and housing. All loans 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 of find a dignified livelihood. They are offered interest free loan. By the end of July
2015, cumulative members under this program reached 78,420. A total US $ 2.59 million has so
far been disbursed. Grameen Bank introduces Higher Education loan for the borrower children
from 2000. By July 2015 there are 53,421 students received higher education loan from Grameen
Bank. In an effort to encourage members to educate their children, Grameen offers Scholarships
to children of its members. By July 2015-2, 24,791 students (both boys and girls) have received
scholarships equal to US $ 5.07 million. In July 2015, Grameen Bank 2568 branches, 268
offices, 40 zonal offices and 40 zonal audit offices. Through 1,42,223 centers, spread over 81390
villages, over US$ 17415.60 million have been distributed to nearly 8.68 million borrowers, 96%
of them are women. Saving balance of the borrowers stands at US$ 71377.01 million. Housing
loan total US$ 386.55 million and have been disbursed to 6,92,865 members. The outstanding
amount of loans stands at US$ 0.21 million. In 2006 Grameen Bank and its founder Prof.
Muhammad Yunus win the Nobel Peace prize.
Objectives:
The Objectives, which is proclamation by the GB, is poverty alleviation mentioning the credit as
the most powerful instrument of engine of development, if has been providing group –based
credit facilities to the poorest section of rural society for the creation of self- employment and
income generating activities. The objectives, which are spiffed by the GB, are mentioned here: -
 To empower the rural poor especially the women who are seriously neglected and
ignored, through creation of self-employment opportunities and freedoms of them
 To provide financial services exclusively to the poorest section of rural area which is
excluded from the formal credit institutions
 To rescue the poor people from the informal moneylenders who arte exalting them by
charging exorbitant rate of interest of credit
 To provide organizational support to the disadvantage people for better use of credit and
income as well
 To develop human capital in the rural areas through providing developmental programs
regarding education, health, nutrition, disaster management etc.
 To mobilize savings as a part of future nope for poor
 To reduce rural unemployment and dependency rat by offering self-employment
opportunities. In rural non-farm sector
 Extend banking facilities to rural bottom poor, without any collateral
 Eliminate the exploitation of money lenders
 Reverse the age-old vicious cycle of poverty through small credit

Submitted by:
Name of the Student Intern: Kishor Kumar Biswas
Roll : M160201863
Major: Accounting & Information Systems
Jagannath University.
Date: June 08, 2018
ACTION BY THE SUPERVISOR: Approved __________
Disapproved __________
Approved with Revision __________