Grameen bank (intern)

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Borrower satisfaction on loan settlement procedure of Grameen Bank
CHAPTER – 1
INTRODUCTION

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1.1 Introduction of Grameen Bank:
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.
1.2 Background of the Study:
The report has been prepared for fulfilling the requirement of internship of BBA
program. Duration of the internship was for 3 months, this report was approved by
Shafat Al Rafaee Lecturer Department of Marketing, Bangladesh University of
Business and Technology. Internees is a must criterion for Bachelor of Business
Administration (BBA) student get simple opportunity to apply their theoretical
knowledge into practical application. During the time, student have the opportunity to
adopt themselves into the particular environment of the organization. It provides a
unique opportunity to see the reality of business during student life, which enables them
to building confidences and working knowledge in advance of the part of their career.
To fulfill this requirement every university of business arrange a program of internee.
Here we got a chance to apply our theoretical knowledge that we acquired from class
lectures, books, journals, seminar, workshop, etc. and compare with practical setting.
1.3 Scope of the study:
The scope of the study is concentrated mainly on the variable like branches in the rural
area, weekly payment system, bank activities at their home, owner of (GB), no
collateral or legal document, opportunity to paid instalment at their home, to get 30%
profit yearly, low interest rate similar other microcredit institution, etc.

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1.4 Significance of the study:
Education will be the most effective when theory and practice blends. Theoretical
knowledge gets its perfection with practical application and the internship is designed to
bridge the gap between the theoretical knowledge and real application. We will know that
there no alternative of practical knowledge which is more beneficial then theoretical aspect.
The prime reason of this study is to become familiar business world and to attain practical
knowledge about the overall banking and corporate world, which is so much essential for
each and every student to meet the extreme growing challenge in job market.
1.5 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, provide 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.
1.6 Methodology of the Study:
1.6.1 Source of Data:
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

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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
1.6.2 Sample Plan:
 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.
1.7 Limitation of the study:
Limitations of the study are as follows:
 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.

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CHAPTER – 2
ORGANIZATIONAL
OVERVIEW

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2.1 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’s positive impact on its poor and formerly poor borrowers has been
documented in many independent studies carried out by external agencies including the
World Bank, the International Food Policy Research Institute (IFPRI) and the
Bangladesh Institute of Development Studies (BIDS).
2.2 History:
Grammen Bank Grammen Bank was founded by Prof. Muhammad Yunus.He was born
in 28th June, 1940 in the village of Bathua, in Hathazari, Chittagong, the business center
of what was then Eastern Bengal. He was the third of 14 children of whom five died in
infancy. His father was a Successful goldsmith who always encouraged his sons to seek
higher education. But his biggest influence was his mother. Sufia Khatun, who always
helped any poor that knocked on their door. This inspired himself to eradication of
poverty. His early childhood years were spent in the village. In 1947, his family moved

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to the city of Chittagong, where his father had the jeweler business.
In 1974 professor Muhammad yunus, a Bangladeshi economist
from Chittagong University, led his students on a field trip to a poor
village. They interview a woman who made bamboo stools, and
learn that she had to borrow the equivalent of 15p to buy raw
bamboo for each stool made. After repaying the middleman,
sometimes at rates as high as 10% a week, she was let with a penny
profit margin. Had she been able to borrow at more advantage rates,
she would have been able to mass an economic cushion and raise
herself above subsistence level.
Realizing that there must be something terribly wrong with the
economics he was teaching, Yunus took matters into his own hands and from his own
pocket lent the equivalent of 17 to 42 basket – weavers. He found that it was possible with
this tiny amount not only to help them survive, but also to create the spark of personal
initiative and enterprise necessary to pull themselves out of poverty.
Against the advice of bank and government, Yunus carried on giving out ‘micro-loans’,
and in 1983 formed the Grameen Bank, meaning ‘village bank’ founded on principles of
trust and solidarity. Against the advice of banks and government, Yunus carried on giving
out ‘micro-loans’, and in 1983 formed the Grameen Bank, meaning ‘village bank’ founded
on principles of trust and solidarity. In Bangladesh by 2015, Grameen has 2,568 branches,
with 21,751 staff serving 8.81 million borrowers in 81,392 villages. On any working day
Grameen collects an average of $1.5 million in weekly installments. Of the borrowers, 97%
are women and over 97% of the loans are paid back, a recovery rate higher than any other
banking system. Grameen methods are applied in projects in 58 countries, including the
US, Canada, France, the Netherlands and Norway.

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2.3 Grameen Bank Mission:
Enable the poor, especially women, to create a world without poverty and hunger.
Grameen Foundation is a global nonprofit that creates breakthrough solutions spanning
financial, agricultural and health services. Grameen Bank use digital technology and
strengthen local partner networks to design and deliver solutions that open opportunity
for women and families living in poverty.
Grameen Bank work is inspired by the people we serve. Grameen Bank believe there
is no greater force than the power of women driven to improve their own lives and the
lives of those around them. But they need real breakthroughs that enable them to
overcome the economic, cultural and gender barriers that keep families trapped in
poverty.
To engender such breakthroughs, Grameen Bank design strategies that equip women
and families with essential tools and knowledge. Grameen Bank train networks of field
agents to implement the solutions, and provide training and education to the women
themselves. Grameen Bank bring together partners to co-design and scale-up solutions.
And, Grameen Bank evaluate our impact to continuously improve the work Grameen
Bank do.
The most important breakthrough is hers.
It is the breakthrough of a woman who is no longer afraid to try something new. Using
new tools, knowledge and connections, she began saving. She invested in her farm. She
talked to her husband about planning their family. Her children were hungry and sick,

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then she learned how she could help them. She took action. She changed her life, and the
lives of her children and her community.
The most important breakthrough is hers -- and that is just the beginning.
Our breakthroughs are:
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. Grameen Bank use mobile phones to deliver
information, training and services. Digital tools help us to collect data and derive insights
for solutions that improve smallholder farming and provide access to health services for
people in poor communities.
 Anchored by community:
Grameen Bank develop breakthrough solutions for individuals and groups, whether
a women’s self-help group in rural Bangladesh, a savings groups in a West African
village, or a farmers’ collective in the mountains of Mexico. Working through
groups further extends the reach of digital solutions, and supports members as they
build community, confidence and capability.
 Realized with partners:
Grameen Bank convene the partners needed to create and implement sustainable
solutions. Microfinance institutions and banks, technology companies and
agribusinesses, non-governmental organizations and government agencies — all
can be partners. Many partners operate their own networks of field agents. Grameen
Bank train them on the new tools and ways of working, enabling partners to scale
and sustain solutions. Partners have their own breakthroughs, as they learn how to
better work with and for the poor.

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 Integrated by nature:
The problems of poverty are complex and interlinked, and so are the solutions.
Grameen Bank create integrated financial, health, nutritional and agricultural
services, and always consider the impacts on women and men, to ensure that
solutions benefit all.
At Grameen Foundation dedicated to ensuring that the relentless spirits and hard work
of women around the world aren’t wasted. Grameen Bank dedicated to supporting their
indomitable wills with breakthrough ways to do what they are already driven to do – to
provide secure lives and bright futures for their families, their communities and
themselves.
2.4 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.

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2.5 Organization Structure:
Figure: Organization Structure
Head Office
Zonal Office (40)
6-8 Area at each Z.O
Area office (265)
8-10, Branch at each A.O
Branch office (2568)
60-70, Center at each B.O
Center
(8-12 groups)
Group
0
00000
Membe
r
Secretar
y
Chairman Membe
r
Member
0
0
0

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2.5.1 Organizational Hierarchy:
Figure: Organizational Hierarchy
Grameen bank Board of Directors
Managing Directors
General
Manager
General
Manager
General
Manager
General
Manager
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Deputy
General
Manage
r
Co-
ordinatio
n &
operatio
n
Dept.
(West)
Administ
ration
Dept.
GB
Secretari
MD’s
Secretari
at
Audit
Dept.
Services
Dept.
Accounts
&
Finance
Dept.
Monitori
ng &
Evaluati
on
Dept.
Internati
onal
Prog.
Dept
Establish
ment
Dept.
Traning
Co-
ordinatio
n &
operatio
n
Dept.
(East)
Planning
Section
Planning
Section
Technology
&
Development
Section
Contraction
Section
Deputy Managing
Directors

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2.6 Decisions
2.6.1 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.

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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.

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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.

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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.

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2.6.2 Ten Indicators:
Every year GB staff evaluate their work and check whether the socio-economic situation
of GB members is improving. GB evaluates poverty level of the borrowers using ten
indicators.
A member is considered to have moved out of poverty if her family fulfills the
following criteria:
1. The family lives in a house worth at least Tk. 25,000 (twenty-five thousand) or a
house with a tin roof, and each member of the family is able to sleep on bed instead
of on the floor.
2. Family members drink pure water of tube-wells, boiled water or water purified by
using alum, arsenic-free, purifying tablets or pitcher filters.
3. All children in the family over six years of age are all going to school or finished
primary school.
4. Minimum weekly loan installment of the borrower is Tk. 200 or more.
5. Family uses sanitary latrine.
6. Family members have adequate clothing for everyday use, warm clothing for
winter, such as shawls, sweaters, blankets, etc. and mosquito-nets to protect
themselves from mosquitoes.
7. Family has sources of additional income, such as vegetable garden, fruit-bearing
trees, etc., so that they are able to fall back on these sources of income when they
need additional money.
8. The borrower maintains an average annual balance of Tk. 5,000 in her savings
accounts.
9. Family experiences no difficulty in having three square meals a day throughout the
year, i. e. no member of the family goes hungry any time of the year.
10. Family can take care of the health. If any member of the family falls ill, family can
afford to take all necessary steps to seek adequate healthcare.

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2.6.3 Credit Delivery System:
Grameen Bank Credit Delivery means taking credit to the very poor in their villages by
means of the essential elements of the Grameen credit delivery system.
Grameen Bank credit delivery system has the following features:
 There is an exclusive focus on the poorest of the poor.
Exclusivity is ensured by:
1) Establishing clearly the eligibility criteria for selection of targeted clientele
and adopting practical measures to screen out those who do not meet them.
2) In delivering credit, priority has been increasingly assigned to women.
3) The delivery system is geared to meet the diverse socio-economic
development needs of the poor.
 Borrowers are organized into small homogeneous groups.
Such characteristics facilitate group solidarity as well as participatory interaction.
Organizing the primary groups of five members and federating them into centers
has been the foundation of Grameen Bank’s system. The emphasis from the very
outset is to organizationally strengthen the Grameen clientele, so that they can
acquire the capacity for planning and implementing micro level development
decisions. The Centers are functionally linked to the Grameen Bank; whose field
workers have to attend Centre meetings every week.
 Special loan conditionality’s which are particularly suitable for the poor.
Include:
1. Very small loans given without any collateral
2. Loans repayable in weekly instalments spread over a year
3. Eligibility for a subsequent loan depends upon repayment of first loan
4. Individual, self-chosen, quick income generating activities which employ
the skills that borrowers already posses
5. Close supervision of credit by the group as well as the bank staff
6. Stress on credit discipline and peer support solidarity.
7. Special safeguards through savings to minimize the risks that the poor
confront
8. Transparency in all bank transactions most of which take place at center
meetings.

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 This is reflected in the “sixteen decisions” adopted by Grameen borrowers. This
helps to:
1) Raise the social and political consciousness of the newly organized groups,
2) Focus increasingly on women from the poorest households, whose urge for
survival has a far greater bearing on the development of the family,
3) Encourage their monitoring of social and physical infrastructure projects –
housing, sanitation, drinking water, education, family planning, etc.
 Expansion of loan portfolio to meet diverse development needs of the poor.
As the general credit programmer gathers momentum and the borrowers become
familiar with credit discipline, other loan programmers are introduced to meet growing
social and economic development needs of the clientele. Besides housing, such
programmers include:
1) Credit for building sanitary latrines
2) Credit for installation of tube-wells that supply drinking water and irrigation for
kitchen gardens
3) Credit for seasonal cultivation to buy agricultural inputs
4) Loan for leasing equipment / machinery, i.e., cell phones purchased by Grameen
Bank members
5) Finance projects undertaken by the entire family of a seasoned borrower.

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2.7 Awards Received by Grameen Bank:
i. SWITZERLAND: Aga Khan Award for Architecture: 1989
Awarded Aga Khan Award for Architecture, 1989 by Geneva based Aga Khan
Foundation for designing and operating Grameen Bank Housing Programmed
for the poor, which helped poor members of Grameen Bank to construct 60,000
housing units by 1989, each costing on an average $ 300.
ii. BELGIUM: King Baudouin International Development Prize: 1993
Awarded “The King Baudouin International Development Prize 1992″ for its
recognition of the role of women in the process of development and the novelty
of a financial credit system contributing to the improvement of the social and
material condition of women and their families in rural areas.
iii. BANGLADESH: Independence Day Award: 1994
Awarded Independence Day Award for outstanding contribution to Rural
Development.
iv. MALAYSIA: Tun Abdul Razak Award: 1994
Awarded 1994 Tun Abdul Razak Award for the Bank’s unique programmed to
lend money to the poorest of the poor and thus transform the lives of thousands of
impoverished people.
v. UNITED KINGDOM: World Habitat Award: 1997
Awarded “World Habitat Award: 1997” by Building and Social Housing
Foundation.
vi. INDIA: Gandhi Peace Prize: 2000
Awarded “Gandhi Peace Prize: 2000″ by Government of India.
vii. U.S.A.: Petersburg Prize: 2004
Awarded “Petersburg Prize 2004″ by the Development Gateway Foundation,
U.S.A.
in 2004.
viii. Norway: Nobel Peace Prize: 2006
Awarded “Nobel Peace Prize 2006″ in October, 2006.

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2.8 Whats 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
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 methodology is not based
on assessing the material possession of a person, it is based on the potential of a person.
Grameen believes that all human beings, including the poorest, are endowed with
endless potential.
Conventional banks look at what has already been acquired by a person. Grameen looks
at the potential that is waiting to be unleashed in a person. Conventional banks are
owned by the rich, generally men. Grameen Bank is owned by poor women.
Overarching objective of the conventional banks is to maximize profit. Grameen
Bank’s objective is to bring financial services to the poor, particularly women and the
poorest to help them fight poverty, stay profitable and financially sound. It is a
composite objective, coming out of social and economic visions. Conventional banks
focus on men, Grameen gives high priority to women. 97 per cent of Grameen Bank’s
borrowers are women. Grameen Bank works to raise the status of poor women in their
families by giving them ownership of assets. It makes sure that the ownership of the
houses built with Grameen Bank loans remain with the borrowers, i.e., the women.

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2.9 Poverty Reduction Strategy:
Profitable and sustainable financial intermediation is possible with the poor, who are
otherwise excluded from the formal credit system because of lack of collateral, and poverty
reduction is possible through targeted credit. This is the key finding of an ongoing study of
the Grameen Bank conducted jointly by the World Bank and the Bangladesh Institute of
Development Studies. This study uses aggregate and branch- level data of Grameen Bank
for 1985 through 1993 to determine how the Bank operates, at what cost, and whether its
program is sustainable and replicable. The study uses village-level data to examine macro-
level effects, such as the Bank's impact on rural wages. The study also uses household
survey data to examine household and intrahousehold impacts on income, employment,
asset accumulation, nutrition, health, and education. Some of the findings of this study are
reported below.
 Strategies for Poverty Reduction:
Grameen Bank believes that lack of access to credit is the biggest constraint for the
rural poor. If the poor are provided credit on reasonable terms, they themselves best
know how to increase their incomes. Grameen Bank targets and mobilizes the poor and
creates social and financial conditions so that they receive credit by identifying a source
of self-employment in familiar rural non-farm activities. The Bank's method of
targeting the poor is effective as it mobilizes only those who are willing to bear the
costs of group formation, training, and monitoring each other's activities, and those who
are satisfied with the relatively small sums they can borrow and repay. To better meet
its ultimate goal of social and economic development, Grameen Bank targets women
more than men. By doing so, it directly channels credit to the poorest and the least
empowered and helps improve the living standards of their families. Along with
providing credit, Grameen Bank offers guidelines to members for codes of conduct and
activities aimed at improving their social and financial conditions. It also provides
training to women in maternal health, nutrition, and childcare to generate greater
demand for basic health care services.

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 Strategies for Financial Intermediation:
Lending entails high risk of loan default due to adverse selection of borrowers and
disability of lenders to enforce the loan contracts. Contrary to the practice of formal
finance, Grameen Bank lends (in small amounts) to the poor based on group
responsibility where individual access to credit depends on group repayment
behavior. Group lending uses peer pressure to monitor and enforce contracts and
helps screen good borrowers from bad ones. Unlike other development banks,
Grameen Bank mobilizes savings as an integral part of lending. Each member is
required to save Taka 1 each week and buy a Grameen Bank share worth Taka 100.
In addition, each borrower contributes 5 percent of the loan amount to a group fund
and Taka 5 for every 1,000 Takas above loan size greater than Taka 1,000 to an
emergency fund. These savings mobilization schemes provide protection of loans
against default, an internal source of finance, and a stake for the members in Bank
operations.
 Grameen's Success in Poverty Reduction:
While sophisticated econometric analysis is underway, preliminary analysis
suggests that Grameen Bank has generated a number of benefits both at the
household and village level. At the household level, the benefits from program
participation include changes in income, employment, assets accumulation, net
worth, and other household welfare indicators (such as contraceptive use, school
enrollment of children, etc.). Program participation has enabled members to
enhance their assets and net worth. For example, a program participating household

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owns 56 percent more resources and 51 percent more net worth than a nonparticipating
household. Program participation has also increased calorie intake, especially among
female household members. The incidence of poverty is substantially reduced among
program participants. Labor force participation, especially among women, is higher
among participants than nonparticipants; women's labor force participation is 66
percent among program participants compared to 52 percent for non-participants. The
school participation rate of girls is also higher for participants (57 percent) than for
nonparticipants (36 percent). Program participation also increases the use of
contraceptives, better toilet facilities, and better drinking water. In addition, program
placement generates income gains for the poor as a whole through its impacts on the
local resource allocation. For example, the daily male wage is 23 percent higher in
program villages compared with no program villages. Even after controlling for village
characteristics, the study finds that up to 11 percent of the 23 percent wage increase is
due to Grameen Bank program placement.
 Grameen's Replicability:
The group-based lending is replicable in other countries where the market failure
requires credit to be targeted but the existing financial institutions cannot be used to
deliver credit. The model is also desirable if financial intermediation requires social
mobilization such as organization, and imperfect information and imperfect
enforcement make lending highly risky and costly. In order to successfully replicate
group- based lending for poverty alleviation, the poor may need organizational help and
other inputs to improve their income and productivity. But providing such inputs are
costly for an organization which may also need experimentation to determine the modus
operandi of an appropriate delivery mechanism. However, the poor are not likely to be
capable of bearing the full costs associated with program adaptation and
implementation. Thus, successful replication depends on the availability of subsidized
funds at the initial stage and above all, on the creativity and commitment of the
leadership.

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CHAPTER - 3
THEORETICAL ASPECTS

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3.1 Customer Satisfaction:
Definition: Customer satisfaction is a judgement that a product or service feature, or the
product or service itself, provides a pleasurable movement is called customer satisfaction.
Philip Kotler: defines customer satisfaction as a 'person's feeling of pleasure or
disappointment which resulted from comparing a product's perceived performance or
outcome against his/her expectations'.
Business always starts and closes with customers and hence the customers must be treated
as the King of the market. All the business enhancements, profit, status, image etc. of the
organization depends on customers. Hence it is important for all the organizations to meet
all the customers’ expectations and identify that they are satisfied customer.
Customer satisfaction is the measure of how the needs and responses are collaborated and
delivered to excel customer expectation. It can only be attained if the customer has an
overall good relationship with the supplier. In today’s competitive business marketplace,
customer satisfaction is an important performance exponent and basic differentiation of
business strategies. Hence, the more is customer satisfaction more is the business and the
bonding with customer.
3.2 Factors affecting customer satisfaction:
 Employee Behavior is one of the factor that can affect customer badly. For an
example if banker behave badly to a customer then the customer switch to other
bank and the reputation of the bank will be negative. And with the members of
losing customer they will face financial problem in the long run.
 Quality of service customer of satisfaction is greatly affected by the quality of the
service provided by the bankers. For an example, if a banker gives slow service then
the customer will be dissatisfied.
 Attribution the perceived causes of event influence perception of satisfaction a well.
For an example, if a bank fails to get the proper service for her own mistakes, the
she will be the service.
 Perception of equity a fairness customer satisfaction is also influenced by

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perception of equity and fairness. For an example, priority customer is also
influenced by perceptions of equity and fairness. For example, priority customer
of a bank always gets the special service.
 Technological and engineering aspect of the service play an important role. For
example, if the ATM booth of the bank work slowly and if there is shortage of
cash in the booth, then it will create dissatisfaction in customer.
3.3 What do customer want?
Customer expectation are two type:
1. Expressed
2. Implied
Expressed: Customer expectation is those requirements that are written down the
contract are agree upon by parties for example, product satisfaction and delivery
requirements.
Implied: Customer expectation are not written or spoken but are the ones the customer
would expect the supplier to meeting never the less. For example, a customer would
expect the service representative who calls who call on him to be knowledgeable and
competent to solve a problem on the spot.
3.4 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

29
CHAPTER – 4
ANALYSIS
29

30
4.1 Gender:
Figure: Gender
Interpretation: From the graph it is seen that 3% of the respondents are male and 97%
respondent are female.
4.2 Age:
Figure: Age
Interpretation: From the graph it is seen that, 48% respondents age is in between 15
to 30, 32% respondents among 31 to45 and 20% respondents age are above 46.
so, majority of the respondents are 15 to 30.
Gender
Male 3%
Female 97%
22%
14%64%
AGE
15 to 30
31 to 45
46 Above

31
4.3 Occupation:
Figure: 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.
4.4 Longevity in Grameen Bank:
Figure: 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.
5%
10%
25%
60%
Longevity in Grameen Bank
Less then 1 year
2 years
3 years
4years above
5%
60%
35%
Occupation
Govt. Service
Business
Other

32
4.5 Reason for choosing Grameen Bank:
Figure: 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.
4.6 Monthly Family Income:
Figure: Monthly Family Income
Interpretation: From the graph it is seen that 60% of the respondent’s income is Tk.
10000-25000. 25% of the respondent’s income is Tk. 26000-40000, 10% of the
respondent’s income is Tk. 41000-55000 and 5% have 56000 above.
So, majority of the respondent’s salary is the range of Tk. 10000-25000.
60%
25%
10%
5%
Monthly Family Income
10000-25000
26000-40000
41000-55000
56000 Above
55%35%
5%
5%
Reason for Choosing Grameen Bank
Better Service
Location of Agent Service
Reputation of Mobile Bank
Personal Relationship

33
4.7 Grameen bank provide loan facility for everyone:
Figure: Grameen bank provide loan facility for everyone
Interpretation: From the graph it is seen that 7% of the 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.
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%
7%
16%
7%
53%
17%
Grameen bank provide loan facility for
everyone
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

34
4.8 The Application from of Loan is easy to Understand:
Figure: The Application from of Loan is easy to Understand
Interpretation: From the graph it is seen that 70% of 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.
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

35
4.9 Grameen Bank does not wish to take any borrower to the court of law
in case of non-payment:
Agree 5 10%
Neutral 2 30%
Disagree 3 20%
Total 30 100%
Figure: There is no strict law to take borrower court 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.
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

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

37
4.11 Loan installment system of Grameen Bank is Flexible:
Figure: Loan installment system of Grameen Bank is Flexible
Interpretation: From the graph it is seen that 50% of the respondents are Strongly Agree,
So, majority of the respondents comply with the above statement that loan installment
system is flexible of Grameen Bank.
Agree 2 6.67%
Neutral 3 10%
Disagree 7 23.33%
Total 30 100%
50%
7%
10%
23%
10%
Loan installment system of Grameen Bank is Flexible
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

38
4.12 The interest rate charged by the Grameen Bank is reasonable:
Agree 3 10%
Neutral 4 13.33%
Disagree 12 40%
Total 30 100%
Figure: The interest rate charged by the Grameen Bank is reasonable
Interpretation: From the graph it is seen that 27% of the respondents are Strongly
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.
27%
10%
13%
40%
10%
The interest rate charged by the Grameen Bank is
responsible
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

39
4.13 The loan amount received insufficient for the purpose:
Agree 5 16.67%
Neutral 2 6.67%
Disagree 2 6.67%
Total 30 100%
Figure: The loan amount received insufficient for the purpose
Interpretation: From the graph it is seen that 66% of the respondents are strongly Agree,
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.
66%
17%
7% 7%
3%
The loan amount received insufficient for the purpose
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

40
4.14 Grameen Bank provide big financial loan of the company:
Strongly Agree 0 0%
Agree 3 8%
Neutral 3 9%
Disagree 18 61%
Total 30 100%
Figure: Grameen Bank provide big financial loan of the company
So, majority respondents comply with the above statement that Grameen bank proved
sufficient big financial loan to the company.
0%
8%
9%
62%
21%
Grameen Bank provide big financial loan of the
company
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

41
4.15 Grameen Bank rules and regulations are so easy:
Agree 5 16.67%
Neutral 5 16.67%
Disagree 3 10%
Total 30 100%
Figure: Grameen Bank rules and regulations are so easy
So, majority respondents comply with the above statement that Grameen Bank maintain
their rules and regulations easily.
50%
16%
17%
10% 7%
Grameen Bank rules and regulations are so easy
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

42
4.16 Adequate support receive from the bank to expanded business:
Agree 3 10%
Neutral 4 13.33%
Disagree 3 10%
Total 30 100%
Figure: Adequate support receive from the bank to expanded business
Interpretation: From the graph it is seen that 60% of the respondents are strongly
the respondents are disagree and also 7% respondents are strongly Disagree.
So, majority respondents comply with the above statement that Grameen Bank provide
adequate support to their customer to expand business.
60%10%
13%
10% 7%
Adequate support receive from the bank to
expanded business
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

43
4.17 Grameen Bank gives me the convenience if I sometime fall in any
crisis:
Figure: 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.
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

44
4.18 Grameen Bank does not give any mortgage loan:
Figure: Grameen Bank does not give any mortgage loan
Interpretation: From the graph it is seen that 50% of the respondents are strongly
the respondents are disagree and also 1% respondents are strongly Disagree.
So, majority respondents comply with the above statement that Grameen Bank does not
provides 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
Strongly Disagree

45
CHAPTER – 5
FINDINGS

46
5.1 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.
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.

47
CHAPTER – 6
RECOMMENDATIONS
&
CONCLUSION

48
6.1Recommendation:
 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.

49
6.2Conclusion:
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. 1 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.

50
CHAPTER – 7
BIBLIOGRAPHY
&
APPENDIX

51
7.1 Bibliography:
 My supervisor MD. Zakaria Hossain Grameen Bank International Program
Department.
 Websites:
a) www.grameenbank.com
b) www.google.com
c) www.wikipedia.com

52
7.2 Appendix:
Dear Sir,
I am, student of BBA program at Bangladesh University of Business and Technology
(BUBT). I am doing my internship report on Grameen Bank and conducting a survey
topic on “Borrower satisfaction on loan settlement procedure of Grameen Bank”,
as a partial fulfillment of the BBA program. Your honest opinion is valuable for me to
complete the research project and will be kept confidential.
Instruction: Please put tick in the specified boxes and write down your Comments in
the specified space.
Name of the Respondents: ………………………………………….
Branch of the bank: …….…………………………………………..
Survey data: ………………………………………………………..
Cell: ……………………………………………………….
1. Gender:
a) Male b) Female
2. Age (year):
a) 18-30 b)31-45 c) 45 Above
3. Occupation:
a) Government b) Business c) Other
4. Longevity in Grameen Bank:
a) Less than 1-year b) 2-year c) 3-year d) 4year above
5. Reason for choosing Grameen Bank:
a) Better service b) Location of agent service
c) Reputation of mobile Banking d) Personal Relationship

53
6. Monthly family income:
a) Tk. 10000-25000 b) Tk. 26000-40000
c) Tk. 41000-55000 d) 56000 above.
7. Grameen bank provide loan facility for everyone:
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
8. The Application from of Loan is easy to Understand:
9. Grameen Bank does not wish to take any borrower to the court of law in case of
non- payment:
10. The processing time of getting loan from Grameeen Bank is Sufficient:
11. Loan installment system of Grameen Bank is Flexible:
12. The interest rate charged by the Grameen Bank is reasonable:
13. The loan amount received insufficient for the purpose:
14. Grameen Bank provide big financial loan of the company:
15. Grameen Bank rules and regulations are so easy:

54
16. Adequate support receive from the bank to expanded business:
17. Grameen Bank gives me the convenience if I sometime fall in any crisis:
18. Grameen Bank does not give any mortgage loan:

Grameen bank (intern)

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