Grameen Bank Borrower Satisfaction

Welcome
to
My
Presentation Session

Suva Sikder
ID: 14152101426
36th Intake
BBA Program
Major in Marketing
Bangladesh University of Business and Technology
(BUBT)

Presentation
on
“Borrower satisfaction on loan settlement procedure
of Grameen Bank”

Area Covered
 Introduction
 Background of The Study
 Objectives of The Study
 Methodology of the Study
 Limitation of the study
 Organizational overview
 Company profile
 Grameen Bank Mission
 Grameen Bank Objective
 Grameen Bank Sixteen Decisions
 Differences between Grameen bank and conventional bank?
 Theoretical Aspect
 Customer Satisfaction
 Analysis
 Findings
 Recommendations
 Conclusion

INTRODUCTION
Grameen Bank has reversed conventional banking practice by removing the need for
collateral and created a banking system based on mutual trust, accountability, participation
and creativity. Grameen Bank provides credit to the poorest of the poor in rural
Bangladesh, without any collateral. The name Grameen is derived from the word “gram”
which means “rural” or village in the Bengali Language. Micro-Credit loans are based on
the concept that the poor have skills that are under-utilized and with incentive they can
earn more money. The bank also accepts deposits, provides other services and runs several
development-oriented including fabric, telephone and energy companies.

Background of the Study
 As a requirement for the fulfillment of our BBA program at Bangladesh
University of Business & Technology, I was assigned to perform my 03 (Three)
months internship.
 Grameen Bankhas given me the opportunity to commence my internship there
from 15.07.2018 to 14.10.2018.
 During my internship program, I was required to prepare a report on the bank.
 I have tried my best to properly apply my potentiality and theoretical
knowledge to make the report reliable and information worthy.

Objective of the study
Broad Objective: The broad objectives of this report is to analyze the borrower
satisfaction on loan settlement procedure of Grameen Bank.
Specific objective:
1. To Study on different types of loan, provides by Grameen bank.
2. To study on loan disbursement and recovery process of loans.
3. To measure the operating performance of different loan program.
4. To determine the customer preparation related to loan settlement of Grameen
bank.

Methodology of the Study
B. Secondary Data:
Data regarding the credit operation and others of the Grameen Bank were collected from
secondary data like:
 Annual reports of Grameen Bank
 Website of the bank
The data collection method of study consists of both primary and secondary sources.
A. Primary Data:
The collected primary data by surveying the clients of the banks who came to the bank to
fulfilling banking needs. I have collected primary data in the following ways:
 Questionnaire survey
 Observation

Methodology of the Study
 Population: The population of my survey is the customers of Grameen bank.
 Sampling Element: The sample element of the study is the individual customer
of Grameen Bank.
 Sampling Frame: No- structured sampling farm was found.
 Sampling Technique: Non probability convenience sampling method was used to
collect data.
 Sample Size: The sample size of the study is 30.

Limitation of the study
 Limited access to necessary information due to secrecy and security.
 Some confidential data were not disclosed by the bank.
 The allocated time was very short for the study.
 Inadequate info of financial information in the company website.
 Unavailability of most recent financial and other information.
 Lack of pre-experience because this program is for the first time to me.

Company profile
Grameen Bank has inverted conventional banking practice by removing the need for collateral and
created a banking system based on mutual trust, accountability, participation and creativity. GB
provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit
is a cost effective weapon to fight poverty and it serves as a catalyst in the overall development of
socioeconomic conditions of the poor who have been kept outside the banking orbit on the grounds
that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of 'Grameen
Bank' and its Managing Director, reasoned that if financial resources can be made available to the
poor people on terms and conditions that are appropriate and reasonable, 'these millions of small
people with their millions of small pursuits can add up to create the biggest development wonder.
Grameen Bank has total number of borrowers is 6.95 million, 97 percent of them are women. With
2,568 branches. It works in 75,359 villages; Total staff is 21,363 in Bangladesh.

Grameen Bank Mission
 Enable the poor, especially women, to create a world without poverty and hunger
 The most important breakthrough is a woman who is no longer afraid to try something new.
Using new tools, knowledge and connections, she began saving.
 Powered by digital innovation, Grameen Bank make use of the mobile phone that is in
nearly every household to break through barriers of distance, cost and illiteracy.
 Anchored by community, Grameen Bank develop breakthrough solutions for individuals
and groups, whether a women’s self-help group in rural Bangladesh,
 Realized with partners, Grameen Bank convene the partners needed to create and implement
sustainable solutions.
 Integrated by nature, The problems of poverty are complex and interlinked, and so are the
solutions.

Grameen Bank Objective
 Extend banking service to poor men and women.
 To eliminate the exploitation of the poor by money lenders.
 Create chance for self-employment for the vest multitude of unemployed people in
rural Bangladesh.
 Bring the poor, mostly the women from the poorest households, with in the fold of
an organizational format which they can understand and manage by themselves.
 Reverse the age-old vicious cycle of poverty through small credit.

Grameen Bank Sixteen Decisions
1. We shall follow and advance the four principles of Grameen Bank:
Discipline, Unity, Courage and Hard work – in all walks of our lives.
2. Prosperity we shall bring to our families.
3. We shall not live in dilapidated houses. We shall repair our houses
and work towards constructing new houses at the earliest.
4. We shall grow vegetables all the year round. We shall eat plenty of
them and sell the surplus.

5. During the plantation seasons, we shall plant as many seedlings as possible.
6.We shall plan to keep our families small. We shall minimize our
expenditures. We shall look after our health.
7. We shall educate our children and ensure that they can earn to pay for their
education.
8. We shall always keep our children and the environment clean.

9. We shall build and use pit-latrines.
10. We shall drink water from tubewells. If it is not available, we shall boil
water or use alum.
11. We shall not take any dowry at our sons' weddings, neither shall we give
any dowry at our daughter’s wedding. We shall keep our center free from
the curse of dowry. We shall not practice child marriage.
12. We shall not inflict any injustice on anyone, neither shall we allow
anyone to do so.

13. We shall collectively undertake bigger investments for higher incomes.
14. We shall always be ready to help each other. If anyone is in difficulty,
we shall all help him or her.
15. If we come to know of any breach of discipline in any center, we shall
all go there and help restore discipline.
16. We shall take part in all social activities collectively.

Differences between Grameen bank and conventional
bank?
Grameen Bank methodology is almost the reverse of the conventional banking
methodology. Conventional banking is based on the principle that the more you
have, the more you can get. In other words, if you have little or nothing, you get
nothing. As a result, more than half the population of the world is deprived of the
financial services of the conventional banks. Conventional banking is based on
collateral, Grameen Bank system is collateral- free. Grameen Bank starts with the
belief that credit should be accepted as a human right, and builds a system where
one who does not possess anything gets the highest priority in getting a loan.
Grameen Bank methodology is not based on assessing the material possession of
a person, it is based on the potential of a person. Grameen Bank believes that all
human beings, including the poorest, are endowed with endless potential.

Customer Satisfaction
Factors affecting borrows satisfaction of Grameen Bank
 Loan facility for everyone
 Easy to Understand
 Getting loan from Grameeen Bank is Sufficient
 Flexible loan instalment system
 Reasonable interest rate
 Received insufficient loan amount for the purpose
 Provide big financial loan of the company
 Rules and regulations are so easy

Gender
Male 3%
Female 97%
Gender:
Interpretation: From the graph it is seen that 3% of the
respondents are male and 97% respondent are female.
Figure: Gender
22%
14%64%
AGE
15 to 30
31 to 45
46 Above
Age:
Interpretation: From the graph it is seen that, 48%
respondents age is in between 15 to 30, 32% respondents
among 31 to 45 and 20% respondents age are above 46. so,
majority of the respondents are 15 to 30.
Figure: Age

Figure: Longevity in Grameen Bank
5%
10%
25%
60%
Longevity in Grameen Bank
Less then 1 year
2 years
3 years
4years above
Figure: Occupation
5%
60%
35%
Occupation
Govt.
Service
Business
Other
Longevity in Grameen Bank:
Interpretation: From the graph it is seen that 5% of the respondents
is less than 1 year, 10% of the respondents is 2 years, 25% of the
respondents is 3years, and 60% of the respondents is 4 years above.
So, majority of the respondent’s longevity is above 4 years.
Occupation:
Interpretation: From the graph it is seen that 5% of the respondents
are Government service, 60% of the respondents are business and
35% of the respondents are other occupation.
So, majority of the respondents are business service holder.

Figure: Reason for choosing
Grameen Bank
55%35%
5%5%
Reason for Choosing Grameen
Bank
Better Service
Location of Agent
Service
Reputation of Mobile
Bank
Personal Relationship
Reason for choosing Grameen Bank:
Interpretation: From the graph it is seen that, 55% of the
respondents choose Grameen Bank for better service, 5%
of the respondents for reputation of mobile banking, 35%
of the respondent for location of agent service and 5% of
the respondent for personal relationship.
So, majority of the respondents choose the bank for better
service.

Figure: Monthly Family Income
60%
25%
10%
5%
Monthly Family Income
10000-25000
26000-40000
41000-55000
56000 Above
Monthly Family Income:
Interpretation: From the graph it is seen that 60% of
the respondent’s income is Tk. 10,000-25,000. 25% of
the respondent’s income is Tk. 26,000-40,000, 10% of
the respondent’s income is Tk. 41,000-55,000 and 5%
have 56,000 above.
So, majority of the respondent’s salary is the range of Tk.
10,000-25,000.

7%
16%
7%
53%
17%
Grameen bank provide loan facility for
everyone
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Figure: Grameen bank provide loan facility
for everyone
Particular Number of Customer Percentage
Strongly Agree 2 6.67%
Agree 5 16.67%
Neutral 2 6.67%
Disagree 16 53.33%
Strongly Disagree 5 16.67%
Total 30 100%
Grameen bank provide loan facility for
everyone:
respondents are Strongly Agree, 17% of the respondents
are Agree, 7% of the respondents are Neutral, 53% of the
respondents are Disagree and also 16% respondents are
Strongly Disagree.
So, majority of the respondents do not comply with the
above statement that Grameen Bank provide loan facility
for everyone.

Strongly Agree 21 70%
Agree 3 10%
Neutral 4 13.33%
Disagree 2 6.67%
Strongly Disagree 0 0%
Total 30 100%
70%
10%
13%
7% 0%
Grameen bank provide loan facility for everyone
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Figure: The Application from of Loan is easy
to Understand
The Application from of Loan is easy to
Understand:
the respondents are Strongly Agree, 10% of the
respondents are Agree, 13% of the respondents are
Neutral, 7% of the respondents are Disagree and also
0% of respondents are Strongly Disagree.
So, majority of the respondents comply with the above
statement that Grameen Banks application form of
loan is so easy to understand.

Agree 5 10%
Neutral 2 30%
Disagree 3 20%
Total 30 100%
30%
10%30%
20%
10%
Grameen Bank does not wish to take any
borrower to the court of law in case of non-
payment
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Figure: There is no strict law to take borrower
court in case of non-payment.
Grameen Bank does not wish to take any
borrower to the court of law in case of non-
payment:
Interpretation: From the statement it is seen, that 30%
respondents are Strongly Agree with the statement, 10%
respondents are Agree, 30% respondents are Neutral, 20%
respondents are Disagreeing and other 10% respondents
are Strongly Disagreeing with the statements.
So, majority of the respondents comply with the statement
that Grameen Bank does not wish to take any borrower to
the court of law in case of non-payment.

Figure: The processing time of getting loan
from Grameeen Bank is Sufficient
36%
20%
27%
10% 7%
The processing time of getting loan from
Grameeen Bank is Sufficient
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Agree 6 20%
Neutral 8 26.67%
Disagree 3 10%
Total 30 100%
The processing time of getting loan from
Grameeen Bank is:
Interpretation: For the graph it is seen that 36% of the
respondents are Strongly Agree, 20% of the respondents
are Agree, 27% of the respondents are Neutral, 10% of
the respondents are Disagree and also 7% respondents
are Strongly Disagree.
statement that Grameen Banks processing time of
getting loan is sufficient.

50%
7%
10%
23%
10%
Loan installment system of Grameen Bank
is Flexible
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Figure: Loan installment system of
Grameen Bank is Flexible
Agree 2 6.67%
Neutral 3 10%
Disagree 7 23.33%
Total 30 100%
Loan installment system of Grameen Bank is
Flexible:
respondents are Strongly Agree, 7% of the respondents are
Agree, 10% of the respondents are Neutral, 23% of the
respondents are Disagree and also 10% respondents are
Strongly Disagree.
statement that loan installment system is flexible of
Grameen Bank.

Agree 3 10%
Neutral 4 13.33%
Disagree 12 40%
Total 30 100%
27%
10%
13%
40%
10%
The interest rate charged by the Grameen
Bank is responsible
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Figure: The interest rate charged by the
Grameen Bank is reasonable
The interest rate charged by the Grameen
Bank is reasonable:
the respondents are Strongly Agree, 10% of the
Neutral, 40% of the respondents are Disagree and also
10% respondents are Strongly Disagree.
So, majority of the respondents do not comply with the
above statement that Grameen Banks interest rate is
reasonable.

Agree 5 16.67%
Neutral 2 6.67%
Disagree 2 6.67%
Total 30 100%
66%
17%
7%
7% 3%
The loan amount received
insufficient for the purpose
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Figure: The loan amount received insufficient
for the purpose.
The loan amount received insufficient for
the purpose:
respondents are strongly Agree, 17% of the respondents
respondents are disagree and also 3% respondents are
strongly Disagree.
So, majority respondents comply with the above
statement that Grameen bank proved sufficient amount of
loan to their customer.

Strongly Agree 0 0%
Agree 3 8%
Neutral 3 9%
Disagree 18 61%
Total 30 100%
0%
8%
9%
62%
21%
Grameen Bank provide big
financial loan of the company
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Figure: Grameen Bank provide big financial
loan of the company
Grameen Bank provide big financial loan of
the company:
respondents are strongly Agree, 8% of the respondents
respondents are disagree and also 22% respondents are
strongly Disagree.
statement that Grameen bank proved sufficient big
financial loan to the company.

Agree 5 16.67%
Neutral 5 16.67%
Disagree 3 10%
Total 30 100%
50%
16%
17%
10%
7%
Grameen Bank rules and regulations are so easy
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Figure: Grameen Bank rules and regulations
are so easy
Grameen Bank rules and regulations are so
easy:
the respondents are strongly Agree, 16% of the
Neutral, 10% of the respondents are disagree and also
7% respondents are strongly Disagree.
statement that Grameen Bank maintain their rules and
regulations easily.

Figure: Adequate support receive from the
bank to expanded business
Agree 3 10%
Neutral 4 13.33%
Disagree 3 10%
Total 30 100%
60%10%
13%
10% 7%
Adequate support receive from the bank to
expanded business
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Adequate support receive from the bank
to expanded business:
Interpretation: From the graph it is seen that 60%
of the respondents are strongly Agree, 10% of the
Neutral, 10% of the respondents are disagree and
also 7% respondents are strongly Disagree.
statement that Grameen Bank provide adequate
support to their customer to expand business.

Figure:Grameen Bank gives me the convenience
if I sometime fall in any crisis
Agree 3 10%
Neutral 6 20%
Disagree 3 10%
Total 30 100%
50%
10%
20%
10% 10%
Grameen Bank gives me the convenience if I
sometime fall in any crisis
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Grameen Bank gives me the convenience if
I sometime fall in any crisis:
So majority respondents comply with the above
statement that Grameen Bank gives the convenience if
someone fall in any crisis.

Figure:Grameen Bank does not give any
mortgage loan
Agree 4 28%
Neutral 3 19%
Disagree 4 2%
Total 30 100%
50%
28%
19%
2% 1%
Grameen Bank does not give any
mortgage loan
Strongly Agree
Agree
Neutral
Disagree
Grameen Bank does not give any
mortgage loan:
statement that Grameen Bank does not provides any
mortgage loan.

Findings
The study is focused on “Analyzing why people choose Grameen Bank”. After analyzing the
whole report, some positive and negative side is identified. This is given bellow:
1. Grameen Bank provides door step service that means bank collect their installment from
member house it is a great facility for the female members.
2. If anyone who want to become a member then have no necessary to any legal agreement.
3. In Bangladesh only Grameen Bank provides lowest interest rate.
4. Majority of the respondents are satisfied with Grameen Bank only because of better service.
5. Majority respondent “longevity of taking service with the bank is four years above.
6. If any member faces any kind’s problem, then Grameen Bank provides extra loan facility in
their installment period it is call contract loan.
7. Grameen Bank provides home loan to their members.

Findings
8. Most of the respondents disagree that time period of repaying loan of Grameen Bank.
9. Member can get insurance service from the bank.
10. Majority of respondent disagree about the statement that Grameen Bank provide big
financial loan to the company.
11. Most respondent agree that the loan amount of Grameen Bank is insufficient.
12. Most of the respondents agree that service charge at Grameen Bank are satisfactory enough.
13. Member deposit money and if they need that money then, member can withdraw their
savings money in any time.
14. Grameen Bank start loan forgiveness system, only this Bank give this unique facility to
their members. If any member or her husband will die, then bank provide debt forgiveness
facility.

Recommendation
• Grameen Bank should modify loan repayment schedule and for beggar members to avoid
the trouble for early repayment.
• The loan amount should be sufficient enough in order to meet up the demand of the
borrower.
• Majority of the respondents disagree about the statement that loan installment system of
Grameen Bank is flexible for them so, Grameen Bank should maintain the flexible loan
installment.
• Majority of the respondent disagree about the statement that Grameen Bank provide big
financial loan to the company. So, Grameen Bank should provide big financiallone to the
company.
• It should increase more new sector for loan distribution.

Conclusion
Grameen Bank is working with passion and activity, allowing the poor people to get a
microcredit. As Dr. Yunus said, "Credit is a human right." During this internship, I realize that
poverty is actually caused by the social structure rather than any lack of capability on the part of
the people. I am one of the witnesses who saw how microcredit helps people, how the poor
people get a loan, how they overcome the poverty. After this internship I have realized the
effectiveness of microcredit and how it has revolutionized the life of the poor. Of course,
financial aid is not the one and only solution to the poor. However, if this kind of institution can
give hope and courage to the poor, we could surely put poverty into museum.

Grameen Bank Borrower Satisfaction

Grameen Bank Borrower Satisfaction

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