Letter of Transmittal

18st April 1, 2018

Dr. Leyaket Hossain Mahmood
Associate Professor
Department of Accounting and information Systems
Faculty of Business Studies
Jagannath University, Dhaka

Subject: Submission of Internship Report on Microcredit Loan Disbursement and

Recovery Systems of Grameen Bank

Dear Sir,
I would like to inform you that I have completed my internship report on the topic Microcredit
Loan Disbursement and Recovery Systems of Grameen Bank. I have performed my internship
attachment period with Grameen Bank, Mirpur Head Office. Preparing this report, I have
collected information from all available sources in the most realistic and professional way. In
writing this report, I have followed the instructions of my organization while at the same time
consulting my institute supervisor. This gave me the opportunity to theoretical knowledge in
practical field, which will help me in my future career. It has been a great pleasure for me to
work on the report as it provides many opportunities to gain insight about the Microcredit Loan
Disbursement and Recovery Systems.
So, I would like to thank my academic supervisor and employees of Grameen Bank, Mirpur
Head Office to help and support me preparing this internship report.

Thanks and regards

Sincerely yours

………………….
Md. Lais Miah
Id. M160201798
MBA (Evening) program,
Department of Accounting and information Systems
Jagannath University, Dhaka

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 Student Declaration

This is to notify that this report based on the topic “Microcredit Loan Disbursement and
Recovery Systems” has been prepared for academic purpose was asked by our MBA (Evening)
Curriculum, Dr. Leyaket Hossain Mahmood, Associate Professor ,Department of Accounting
and information Systems, Faculty of Business Studies, Jagannath University. It is to be evaluated
as a part of our examination. This has not been prepared for any other purpose like reproduce,
investigation or publication.

………………….
Md. Lais Miah
Id. M160201798, 8th Batch
MBA (Evening) program,
Department of Accounting and information Systems
Jagannath University, Dhaka

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 Certificate from Supervisor

I am pleased to declare that Md. Lais Miah, ID: M160201798, Student of the MBA (Evening)
program as advised to perform a study on the issues “topic Microcredit Loan Disbursement and
Recovery Systems of Grameen Bank” for writing an internship report.

This student has reviewed all the relevant materials and has conducted efforts practically in
Grameen Bank to achieve practical knowledge regarding banking sector in Bangladesh. I have
supervised his study from the very beginning as well as the preparation of the final report.

I also knowingly certify that the internship report is an original one and has not been submitted
elsewhere previously for publication in any form.

He is wished all the best in his effort.

…………………………………
Dr. Leyaket Hossain Mahmood
Associate Professor
Department of Accounting and information Systems
Faculty of Business Studies
Jagannath University, Dhaka

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 Acknowledgement

At first, I would like to express my gratitude to Almighty Allah who has given me opportunity to
go through the total process of internship and to write a report in the regard.

I would like to take the opportunity to express my gratitude to my Internship Advisor, Dr.
Leyaket Hossain Mahmood, Associate Professor, Department of Accounting and information
Systems, Faculty of Business Studies, Jagannath University, whose direction, guidance and
support helped me a lot in writing this report.

It was a great pleasure for me to work in Grameen Bank, Mirpur Head office as an intern. I thank
all the employees for being friendly and cooperative. I was taught lots of important things
through- out my internship career because of their proper attention and co-operation.

I am extremely thankful to Syed Mohammad Alamgir, Deputy General Manager (DGM)

Training and International Department and Ratan kumar Nag, Deputy General Manager Chief
(DGMC), Mr. Humyun Kabir (Principle officer). Who had been advising me in planning my
study and visits to various offices my special thanks are due to Md. Harun-or-Rashid, senior
officer, who was my internship Co-Coordinator in field visits. I am also indebted to the branch
managers of Dagga, Polashi in Narsingdi. My thanks are also due to Md. Enamul Haque,
(Branch manager of Dagga) numerous other members of the Grameen Bank at its Polashi in
Narsingdi branch whom I happened to meet and who taught me how a desire to succeed and faith
in one’s self, can change slowly but surely, the whole social structure.

At last, I must mention the wonderful working environment and group commitment of this bank
that has enabled me a lot deal to do and observe the banking activating during my internship
period of three months.

Finally, I convey my sincere thanks to my parents, family members and friends who inspire in
different ways to complete the report and the course as well.

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 Executive Summary
The title of this internship report is “Microcredit Loan Disbursement and Recovery Systems of
Grameen Bank”. The report is the result of three months internship program with Grameen Bank
of Bangladesh. Theoretical knowledge will be little important unless it is applicable in the
practical life. So, we need proper application of our knowledge to get some benefit from our
theoretical knowledge to make it more fruitful. The internship is designed to have a practical
experience while passing through the theoretical understanding. This report consists of five
chapters i.e. Introduction of the Study, An Overview of Grameen Bank, Conceptual Framework,
Experience during the Internship Period (Microcredit Loan Disbursement and Microcredit Loan
Recovery), Analysis and Findings, Recommendations and Conclusions following appendices and
reference.

Firstly, the initial words about the report were described in the first segment titled Introduction,
which contains the basis of the study. In this part Origin, Rationale, Objectives, Methodology
and limitations are included. Both primary and secondary data and information have been used in
preparing this report. The limitations that have been faced during the data collection,
organization & preparation of the report have been stated. The prime objective of the report is to
describe and highlight the Loan Disbursement and Recovery systems of Grameen Bank.

Secondly, I have discussed the Overview of Grameen Bank such as- Background of the
organization, mission, vision, and Objective, Features of Grameen Bank, Organizational
Structure, General features of Grameencredit, Micro-Credit Process, Loan Disbursement System,
Loan Recovery of Grameen Bank.

Thirdly, I have discussed the main topic Microcredit Loan Disbursement and Recovery Systems
its related function. The highest amount of loan disbursed and recovery an year. Cultivate the
disbursement loan as Basic loan, Housing loan, Straggling beggar loan, Education loan. I discuss
Loan application, Classification of loan, Types of loan, Deposits and its saving.

I hope that Grameen Bank will lead by example by continuing its efficient lending policy in
keeping the loan disbursement and recovery systems indicators at above industrial average and
contribute to country’s economic development-thus attaining a middle income status in the
world.

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 List of Abbreviations

Abbreviations Meaning
GB Grameen Bank
GBRP Grameen Bank Replication Programs
MFI Monetary Financial Institution
NGO Non-Governmental Organization
GGS Grameen General Credit System
ADB Average Daily Balance
LC Letter of Credit
DFI Development Finance Institution
SOE The Statement of Expenditures
SAW Sub Loan Approval and Withdrawal

Table of content

CHAPTER CONTENT TITLE PAGE

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 NUMBER
Letter of Transmittal ii
Students Declaration iii
Teachers Declaration iv
Acknowledgement v
Executive Summary vi
List of Abbreviations vii
Table of Content viii - x
CHAPTER 1 INTRODUCTION

1.1 Background of the Study 2

1.2 Origin of the Report 2
1.3 Objectives of the Study 2
1.3.1 Broad Objective 3
1.3.2 Specific Objectives 3
1.4 Scope of the Report 3
1.5 Limitations of the Study 3-4
1.6 Methodology 4
1.6.1 Primary Sources
1.6.2 Secondary Sources
CHAPTER 2 GRAMEEN BANK: AN OVERVIEW

2.1 Background of Grameen Bank 6

2.2 Vision of Grameen Bank 7
2.3 Mission of Grammen Bank 7
2.4 Objectives of Grameen Bank 7
2.5 Core Values of Grammen Bank 7
3.6 Principles of Grameen Bank 8
2.7 Features of Grameen Bank 8-9
2.8 Organizational Structure 10-11
CHAPTER 3 CONCEPTUAL FRAMEWORK

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 3.1 Definition of Micro-Credit 12
3.2 General features of Grameencredit 12-13
3.3 Differences between microcredit & other financial 13
organizations
3.4 Micro-Credit Process and Loan Disbursement 14-17
System:
3.5 How Micro-Credit Works on Disbursement Process 17-18
3.6 Credit Disbursement and Recovery 18
3.7 Principle of Credit Disbursement & Recovery 18-19
Procedures
3.8 Goals of Credit Disbursement & Recovery 19
Procedures in Banks
3.9 Tools used in Credit Disbursement & Recovery 19
Procedures
3.10 Credit Disbursement & Recovery Procedures have 19
two facets
3.11 Advantages of Grameen Bank 20
3.12 Disadvantages of Grameen Bank 20

CHAPTER 4 EXPERIENCE DURING THE INTERNSHIP

PERIOD

4.1 Microcredit Loan Disbursement

4.1.1 Concept of Loan Performance 23
4.1.2 Core Activities of GB 23
4.1.3 Types of Loan 23
4.1.3.1 Basic Loan 23-25
4.1.3.2 Housing Loan 25-26
4.1.3.3 Struggling Beggar Loan 26
4.1.3.4 Higher Education Loan 26-29
4.1.4 Disbursement Guidelines and Practices 29-31
4.1.5 Loan Disbursement Policies 31
4.1.6 Disbursement Procedures 31-32
4.1.7 Model of Loan Disbursement 33
4.1.8 Core Sector of Microcredit Loan Disbursement 34-35

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 4.2 Microcredit Loan Recovery
4.2.1 Loan Recovery Procedure 37
4.2.2 Loan Monitoring 37
4.2.3 Loan Recovery 38
CHAPTER 5 CONCLUSION AND RECOMMENDATION

5.1 Conclusion 40
5.2 Recommendations 41
Bibliographies 42
Appendices 43

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