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Introduction

Bangladesh is one of the poorest countries in the world. Micro Credit


is a particular response to alleviate poverty of the poor and landless
Grameen Bank provides Micro credit/loan to the poor and helpless
people for their self-employment, which generates their income
allowing them to various activities for themselves and for their
familiespeople.
which has been working for the development of the agricultural
production, small and cottage industries, mass education, Cow &
goat rearing program, poultry farm etc.
Description

Bangladesh has a population of the about 15 core on the small area of land
which is only 143570 square kilometers. Out of the total population about 50%
are women. At present it is very difficult to think a suitable NGO without proper
Micro Credit Programs and management. Grameen Bank is an NGO, which has a
proper Micro Credit program and Management for its poor and landless men &
women member's welfare as well as for their social and financial development.

The members have become wage earners of their families by using this Micro
credit.
Advantages

 the majority of the farmers and borrowers in Bangladesh are benefited by


using Micro credit/loan as a tool for meeting their current expenditure in
agriculture such as for purchasing of seeds, fertilizer, insecticides, and
payments for labor, etc.
 borrowers do side small business and they can get Micro credit for investing
in that business. Such as business of grocery, sweetmeat, tea stall, cow &
goat rearing, Nursery, fisheries etc.
 farmers need micro credit for capital expenditure such as high breed seeds,
fertilizer, insecticides, bullocks, Carts, Sprayer and other agricultural tools
and equipment.
 some farmers and some of the rural peoples need Micro credit for other
purposes such as for arranging daughter’s marriage, reconstruction of
dwelling house, managing urgent medical expenditure and so on.
Disadvantages

A.Effects of Overdue Credit/loan


 The efficiency of employee’s works reduced.
 Unexpected hazards arise in loan management.
 Stagnates arise in the cash flow of the organization.
 Administrative cost increases.
 The loan discipline of the organization hampered.
 Stagnates arise in loan disbursement.
B. The impacts on the beneficiaries:
 Excess interest is to bear.
 Negative impact arises on the outlooks of the beneficiaries &members.
 The economic activities are hampered lack of sufficient capital.
 Getting of the next loan is delayed.
 The economic activities of Samity's are declined.
 The other members lost faith on him/her (the over clue person
Conclusion

The impact of Grameen Bank micro credit program for the socio-economic
development of Bangladesh is found in attitude for giving the financing
opportunities in rural areas, to create job opportunities, to establish the
poorest people etc
The strategic management policies followed by Grameen Bank were highly
effective as more emphasis was given on beneficiaries’ interest in the form of
simple rate of interest, increasing number of installment, close supervision of
the management people, group development spirit and application of
management by exception principle.
The opportunity enjoyed by Grameen Bank is the co-operation of the borrower,
belief and confidence towards Grameen Bank activities, popular image in micro
credit market, and absence of profit motive and adoption of the principle of
socio-economic benefits

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