A Study on The Role of Micro-Credit Programs of Grameen Bank in Bangladesh.

CHAPTER-1

Introduction

1.1    Statement of the problem:

            Over more than a decade Bangladesh has been the cynosure of global attention for achieving considerable success in administering micro-credit effectively and efficiently among the poor. According to Human Development Report 2004, Bangladesh first time took places among least development 50 countries in Human Development index. Agencies specially Grameen Bank dealing with micro-credit dispensing have increasingly been playing a significant role in poverty alleviation and economic growth. The rural poor are the main target of micro-credit invention because they have to live in an abysmal depth of pauperization. The role of small credit are extremely important in poverty reduction through income -generation and self-reliance in Bangladesh. For poverty alleviation and development , both government organization and non government organization are working in their respective spheres through extending credit amongst the rural poor. For poverty alleviation and development two types of policies (a) Indirect policies: This kind of policy refers to the strategy of attaining higher rate of economic growth through massive investment to stimulate "Trickiedown" benefit to the poor & (b) direct policies: Direct policies are aimed at increasing the productive capabilities of the poor through same specific target with emphasis on skill development and access to credit. More than one third of the peoples of Bangladesh take micro credit facilities.

1.2   Objectives of the study:

         The objectives of this study are-

(i)     To determine the role of Grameen Bank on micro-credit Program.

(ii)   To determine the Drawbacks of Grameen Bank on micro-credit Program.

1.3    Scope of the Term Paper :

         The Term Paper is made according to the objectives of study. The most stupendous achievements have been made on credit disbursement by Grameen Bank among the other micro enterprise development lending agencies in Bangladesh. This paper scope is so limited hence it is discussed in narrow outlook.

1.4    Methodology:

         Methodology is the vital part of any research. It is the heart of a research. For my research the methodology that I have used are given below:

(i)     Nature of the study : There are various types of study, for my study I have used descriptive research.

(ii)    Population of the study : All members of Grameen Bank Micro-Credit programs of Bangladesh were the population of this study.

(iii)  Sample size and sampling techniques : Due to constrain of resources in terms of time it was confined to a single village of chittagong district named Mohammadpur under East Rouzan union of chittagong. A total of 25 members (who are taken loan from GB) were interviewed. A multistage sampling technique was used for this purpose.

(iv)   Sources of data : All data collected from both primary and secondary sources.

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