SME Activities of Grameen Bank

Abstract

The research supports the objective of demonstrating the impact of microcredit on the poor. Pioneer of microfinance Professor Muhammad Yunus invented a Bangladeshi banking which has grown the importance as a development tool to alleviate poverty, empower women, and foster entrepreneurship in developing countries. The purpose of this paper is to determine the influence of Grameen Bank's micro-credit facilities in eliminating the poverty and empowering the poor women. All of Grameen Bank's activities are aimed at the rural poor who are functionally landless. Non-governmental organizations (NGOs) are all participating in microfinance, but they are not regulated or monitored in the same way that Grameen Bank is. All MFIs use identical on-site loan disbursement and weekly collection techniques by organizing village organizations or centers, and they give generally small, uncollateralized one-year term loans to individuals belonging to jointly liable peer groups. There is also an investigation of the microfinance sector in Bangladesh, which revealed similarities and differences between the microfinance industry in Bangladesh and Grameen Bank, their targeted customers, competitors, operational activities etc. According to my research, there is a significant difficulty in the MFI sector, such as when an MFI provides a loan, if they do not have funds, they must obtain funds from other banks, and if the interest rate rises, it will have a significant negative impact on the operation of the institution. If the government boosted funding for NGOs and microfinance institutions, rural poor people will be benefited because they have a significant impact on our economy. They assist rural communities by giving loans with no collateral. During my internship, I discovered that Grameen Bank workers are not advanced at adopting new technologies, so authorities of the bank need to teach them about new technologies and to adapt with them it in order to make employees and members more productive and efficient. Despite various lacking in its operations, Grameen Bank's effective and efficient managerial abilities, innovative approach, and decentralized institutional patterns are remarkable. Grameen Bank has the most members of all the Micro Finance Institutes in Bangladesh, thanks to its innovation of alternative ways to finance the poor and ongoing attempts to produce new goods and services. I made every effort to make this report as informative as possible. I'm hoping that this paper will aid in future studies.