An Analysis of the Marketing Activities of Grameen Bank

Submitted to
Mohammed Masum Iqbal
Professor & Dean
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

Submitted by
Atik Ishrak
ID: 151-11-4308
Major in Marketing
BBA Program
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

Date of Submission: 06/12/2019

 Letter of Transmittal

Date: 06/12/2019
Mohammed Masum Iqbal
Professor & Dean
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

Subject: Submission of Internship Report entitled “An Analysis of the Marketing Activities of
Grameen Bank”

Dear Sir,
With due respect, I am submitting my internship report on the topic entitled “An Analysis of the
Marketing Activities of Grameen Bank” as a partial fulfillment of my BBA Program.
It is pleasure to inform you that I have already finished my internship in a reputed organization
in Grameen Bank. It was a great opportunity acquires knowledge and experience in respect of the
functions, Procedures and operational activities other than my topic of study. This report is
integrated parts of my BBA program which I am very much enrich our academic background
about to enter the professional field. In preparing this report I tried my level best to accumulate
relevant information from all the available sources. I shall be highly encouraged if you are kind
to receive this Internee Report Paper.
Therefore, I sincerely hope that you will appreciate my effort and I shall be grateful if my report
is accepted for the appropriate purpose.
Sincerely Yours,

Atik Ishrak
ID: 151-11-4308
Major in Marketing
BBA Program
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

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 Student’s Declaration

I hereby declare that the report of internship namely “An Analysis of the Marketing Activities
of Grameen Bank” is prepared by me after the completing of 3 (three) months of internship
with Grameen Bank, Mirpur- 2 Branch and a comprehensive study of the existing activities of
Grameen Bank and its implementation. Submitted by me to Daffodil International University, for
the degree of Bachelor of Business Administration I also declare that this paper is my original
worked and prepared for academic purpose which is a part of BBA and the paper may not be
used in actual market scenario.

.......................................

Atik Ishrak
ID: 151-11-4308
Major in Marketing
BBA Program
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

© Daffodil International University ii

 Certificate of Approval

This is to certify that Atik Ishrak, ID: 151-11-4308, a student of BBA Program, Daffodil
International University has prepared the internship report under my supervision. He has worked
at Grameen Bank, Mirpur- 2 Branch as an intern and completed the report entitled “An Analysis
of the Marketing Activities of Grameen Bank” as a partial requirement for obtaining BBA
degree. He has been permitted to submit the report.

Atik Ishrak bears a good moral character and very pleasing Personality.

I wish him all success in life.

..........................................

Mohammed Masum Iqbal

Professor & Dean
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

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 Preface
An internship Program is a very important and essential means for acquiring practical knowledge
because the knowledge of a student does not get fulfilled until he acquires knowledge
theoretically and practically. For the completion of this study I can’t deserve all praise. There
were a lot of people who helped me by providing valuable information, advice and guidance for
the completion of this report in the scheduled time.

First, I want to express my gratitude to Almighty Allah for giving me the strength and the
composure to finish the task within the scheduled time. I would also like to convey my gratitude
to my internship supervisor Mohammed Masum Iqbal, Professor & Dean, Department of
Business Administration, Faculty of Business & Entrepreneurship, for his continuous support.
His guidance helps me separate the important and necessary details from the unnecessary
certainly helped me to stay on the correct track.

I acknowledge my indebtedness to Md. Abdus Sabur Khan (Principal officer, Audio visual unit)
whose give me all the support that I needed to proper the report. I would like to thank all the
employee of Grameen bank at Mirpur- 2 Branch, Dhaka who gave necessary information and
excellent guidance to prepare this internship report. They have been extremely co-operative and
willing to help at all time.

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 Acknowledgement

First, I would like to express my deepest gratitude to Almighty Allah for giving me the strength
and the composure to finish the report within schedule time. At the very outset, I am deeply
indebted to my honorable Supervisor Mohammed Masum Iqbal, Professor & Dean, Department
of Business Administration, Daffodil International University, for his whole-hearted Supervision
to me in preparing this report.

In the preparation of this report the encouragement and assistance given by a number of people
from Grameen bank, Mirpur- 2 Branch, Dhaka. I am grateful to the entire department Staff of
Grameen bank, Mirpur- 2 Branch, for giving me helpful Support. My heart gratitude goes to her
for reviewing the whole report so carefully and expertly and for giving me valuable advices and
Suggestion to complete the whole report in a right manner. His suggestion and comments to
make the report a good one was really a great source of spirit for me.

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 Executive Summary
The report is based on the Marketing Activities of Grameen Bank. In this report, findings are
based on fundamental analysis of marketing strategy, marketing mix, Identify the problems and
so on.

In this report, I have examined the Marketing Activities of GRAMEEN BANK Limited. The
marketing strategy of Grameen bank are they divided the whole country in 40 zone and they
stablish 2568 branches among those zones and now they are covering about 81400 villages.
Grameen banks target customer are those who are poor or didn’t cross poverty line. Most of their
customer (95%) are women. Grameen banks products are deposit and loans and its price is the
interest rate, The principal objective of a bank is to collect the deposit from the surplus portion
and supply the accumulated fund to the deficit portion. Therefore, in the case of deposit
collection, I have found that they have done a magnificent job compare to the existing the entire
private and government bank in Bangladesh. They make their promotion by door to door service
and now they are covering almost the whole country.

At the time of analyzing marketing analysis I found some problems like the Grameen bank are
showing their interest rate are 20% but after analyzing and researching some external report it is
found that their rate are high, Another thing is as the promote their service by door to door
visiting some time their representative make bad behave with their customers, I also found that
as they are focusing the poor people but sometimes the middle class people are trying to get the
benefits.

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Table of Contents
Certificate of Approval................................................................................................................. iii
Acknowledgement......................................................................................................................... v
Executive Summary..................................................................................................................... vi
Chapter 1...................................................................................................................................... 1
1.1 Introduction............................................................................................................................. 2
1.2 Origin of The Study.................................................................................................................. 3
1.3 Objectives of The Study............................................................................................................3
1.4 Methodology of The Study........................................................................................................ 3
1.5 Sources of Data Collection.........................................................................................................4
1.6 Scope of The Study................................................................................................................... 4
1.5 Limitations of The Study...........................................................................................................4
CHAPTER 2.................................................................................................................................. 5
2.1 Historical Profile of Grameen Bank............................................................................................6
2.2 Mission of Grameen Bank......................................................................................................... 6
2.3 Vision of Grameen Bank........................................................................................................... 6
2.4 Grameen Bank Awards..............................................................................................................7
2.5 Grameen Bank Methodology......................................................................................................7
2.6 Grameen Bank at A Glance........................................................................................................9
Chapter 2.................................................................................................................................... 10
3.1 Marketing Strategy.................................................................................................................. 11
3.2 Marketing Strategies of Grameen Bank.....................................................................................11
3.2.1 Segmentation................................................................................................................... 11
3.2.2 Targeting......................................................................................................................... 12
3.2.3 Positioning....................................................................................................................... 13
3.3 Marketing Mix....................................................................................................................... 13
3.4 Marketing Mix of Grameen Bank.............................................................................................13
3.4.1 Product............................................................................................................................ 14
3.4.2 Price................................................................................................................................ 14
3.4.3 Place............................................................................................................................... 15
3.4.4 Promotion........................................................................................................................ 15
Chapter 4.................................................................................................................................... 16

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4.1 Findings................................................................................................................................. 17
4.2 Recommendations................................................................................................................... 18
4.3 Conclusion............................................................................................................................. 19
References................................................................................................................................... 20

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 Chapter 1
Introduction

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1.1 Introduction
Microfinance is a category of financial services targeted at individuals and small businesses who
lack access to conventional banking and related services. Microfinance includes microcredit, the
provision of small loans to poor clients; savings and checking accounts; micro insurance; and
payment systems. Microfinance services are designed to reach excluded customers, usually
poorer population segments, possibly socially marginalized, or geographically more isolated, and
to help them become self-sufficient. [ CITATION htt2 \l 1033 ]

Micro finance supporters also argue that such exposure would help poor people out of poverty,
along with the Micro Credit Summit Campaign participants. For many, microfinance is a way of
promoting economic development, jobs and growth by supporting micro-entrepreneurs and small
businesses; for others, it is a way for the poor to live within their means more efficiently and
leverage economic opportunities while minimizing risks.

Microcredit's impact is a subject of considerable controversy. Proponents state that by higher

employment and higher incomes it reduces poverty. This is expected to lead to better nutrition
and better education for the children of the borrowers. Some argue that women are motivated by
micro-credit. Micro-credit is believed to help applicants graduate from welfare programs in the
U.S. and Canada.

Muhammad Yunus won the Nobel peace prize for inventing microfinance, the practice of
lending small sums at a low interest to allow people to start businesses. And yet he’s not a fan of
capitalism. With the idea of microfinance, Grameen Bank ( গ্রামীণ বাংক) started the journey as a
microfinance organization and community development bank in Bangladesh.

Grameen Bank originated in 1976, in the work of Professor Muhammad Yunus at University of
Chittagong, who released a studies mission to take a look at the way to layout a credit transport
machine to provide banking services to the agricultural poor. In October 1983 the Grameen Bank
was legal with the aid of countrywide regulation to perform as an unbiased financial institution.
In 1998 the Bank's "Low-cost Housing Program" won a World Habitat Award. In 2006, the
financial institution and its founder, Muhammad Yunus, had been mutually provided the Nobel
Peace Prize. [ CITATION htt \l 1033 ]

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1.2 Origin of The Study
A student of Bachelor of Business Administration (BBA) has to work in an organization as an
intern. He can apply his knowledge, that he has earned during the Bachelor of Business
Administration (BBA), can apply in the practical field. During internship program a student need
to work like Advertising agency, insurance companies, garments companies, IT companies,
leasing companies, manufacturing companies, banking sector etc. But a student has to select the
types of institution on the basis that he has done this major.

Generally, the internship term is three months for making a report. For internship a student has to
be done his work in a selected organization to increase the theoretical and practical knowledge
and experience. Thus, as per requirement as my Bachelor of Business Administration (BBA)
programming course, I was selected to the Grameen Bank, Mirpur 2 Branch, Dhaka to complete
my Internship program.

Here I was admitted to report on “An Analysis of the Marketing Activities of Grameen Bank."
Materially, what I did on that establishment during my internship is outlined in the study.

1.3 Objectives of The Study

The study has been conducted with following objectives
 To identify marketing strategies of Grameen Bank Limited;
 To explain marketing mix of Grameen Bank Limited;
 To identify the problems related to the marketing activities of Grameen Bank Limited;
 To make recommendations to solve the problems;

1.4 Methodology of The Study

The report's methodology involves direct observation, oral or verbal contact with all department
staff, questionnaire, study documents, and other analysis methods, tactics, and may include both
current and historical dates. It thus includes both primary and secondary information.

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1.5 Sources of Data Collection
Primary Data

 Branch manager
 Employees at Grameen Bank
 Face to face communication

Secondary Data

 Grameen Bank website

 Grameen Bank annual report
 Some article
 Other website

1.6 Scope of The Study

This report is the output of my practical knowledge during the period of the 3 months’ internship
at Grameen Bank. This report has covered almost all the recruitment and selection process of
Grameen Bank. It also included a brief profile of the organization. It also included the service
categories and the distribution channel of Grameen Bank.

1.5 Limitations of The Study

Although I have tried my level best to provide the most up to date and accurate data about the
company in this report but there were some limitations that’s why I was unable to present the
report to the level of accuracy which I wanted to obtain. The limitations were:
 As a microfinance institution Grameen Bank is on top position and their employee were
too busy to give me enough time.
 The period of three months, is insufficient to learn about the marketing activities of
Grameen Bank.
 About the microfinance marketing activity, the information I got was not enough.

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 CHAPTER 2
Organizational Overview

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2.1 Historical Profile of Grameen Bank
Grameen Bank (GB) 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 offers loans without collateral to the poorest of the poor in rural
Bangladesh. At Grameen Bank, credit is a cost-effective weapon in the war against poverty, and
it acts as a catalyst in the overall development of poor socio-economic conditions held outside
the banking orbit on the ground that they are weak and therefore not bankable. Professor
Muhammad Yunus, the founder of “Grameen Bank” 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.”

As of December, 2018, it has 9.08 million members, 97 percent of whom are women. With 2,568
branches, Grameen Bank provides services in 81,677 villages, covering more than 93 percent of
the total villages in Bangladesh. 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.

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 Research Policy Institute (IFPRI) and the Bangladesh Institute of
Development Studies (BIDS). [ CITATION Int \l 1033 ]

2.2 Mission of Grameen Bank

By providing comprehensive financial services, Empowering the poor to realize their potential
and Break out of the vicious cycle of poverty.

2.3 Vision of Grameen Bank

BANKING FOR THE POOR

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2.4 Grameen Bank Awards
1 ICMAB Awards 2015
2 MCCI Award 2014
3 Norway: Nobel Peace Prize: 2006
4 Petersburg Prize: 2004
5 Gandhi Peace Prize :2000
6 UNITED KINGDOM: World Habitat Award: 1997
7 MALAYSIA: Tun Abdul Razak Award :1994
8 BANGLADESH: Independence Day Award: 1994
9 BELGIUM: King Baudouin International Development Prize: 1993
10 SWITZERLAND: Aga Khan Award For Architecture: 1989

2.5 Grameen Bank Methodology

Method of Action

In Grameen Bank method of action they follow 10 principals. The principals are -

1. Start with the problem rather than the solution: a credit system must be based on a survey
of the social background rather than on a pre-established banking technique.
2. Adopt a progressive attitude: development is a long-term process which depends on the
aspirations and commitment of the economic operators.
3. Make sure that the credit system serves the poor, and not vice-versa: credit officers visit
the villages, enabling them to get to know the borrowers.
4. Establish priorities for action vis-a-vis to the target population: serve the most poverty-
stricken people needing investment resources, who have no access to credit.
5. At the beginning, restrict credit to income-generating production operations, freely
selected by the borrower. Make it possible for the borrower to be able to repay the loan.
6. Lean on solidarity groups: small informal groups consisting of co-opted members coming
from the same background and trusting each other.
7. Associate savings with credit without it being necessarily a prerequisite.
8. Combine close monitoring of borrowers with procedures which are simple and
standardized as possible.
9. Do everything possible to ensure the system’s financial balance.
10. Invest in human resources: training leaders will provide them with real development
ethics based on rigor, creativity, understanding and respect for the rural environment.

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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.

Breaking the vicious cycle of poverty through microcredit

The Grameen Bank is based at the voluntary formation of small groups of five people to offer
mutual, morally binding institution ensures in lieu of the collateral required through traditional
banks.

The fulfillment of this technique indicates that some of objections to lending to the bad may be
overcome if cautious supervision and control are provided. For instance, it had in advance been
concept that the poor might no longer be capable of discover remunerative occupations. In truth,
Grameen debtors have correctly done so. It became notion that the negative could not be able to
pay off; in fact, compensation quotes reached ninety-seven percentages. It was thought that
terrible rural ladies in particular have been no longer bankable; in fact, they accounted for 94
percentage of debtors in early 1992. It turned into also notion that the negative cannot keep; in
truth, institution financial savings have confirmed as a hit. It became thought that rural strength
structures would make sure that this type of bank failed; however, the Grameen Bank has been
capable of extend unexpectedly. Indeed, from fewer than 15,000 borrowers in 1980, the club had
grown to nearly 100,000 via mid-1984. By the quilt of 1998, the wide variety of branches in
operation was 1128, with 2.34 million participants (2.24 million of them ladies) in 38,957
villages. There are sixty-six,581 centers of companies, of which 33,126 are girls. Group savings
have reached 7,853 million taka (about USD 162 million), out of which 7300 million taka (about
USD 152 million) are stored by way of ladies.

It is estimated that the common household earnings of Grameen Bank members is set 50
percentage higher than the target institution in the manage village, and 25 percentage better than
the target group non-participants in Grameen Bank villages. The landless have benefited
maximum, accompanied by marginal landowners. This has ended in a pointy discount within the
quantity of Grameen Bank members residing under the poverty line, 20 percentages as compared
to 56 percentages for similar non-Grameen Bank individuals. There has additionally been a shift
from agricultural salary laborer (taken into consideration to be socially inferior) to self-

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employment in petty trading. Such a shift in occupational patterns has an oblique advantageous
impact on the employment and wages of other agricultural waged laborers. What started out as a
modern local initiative, “a small bubble of wish”, has for this reason grown to the point in which
it has made an impact on poverty relief at the country wide degree”.

10 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.

16 Decisions
Grameen Bank maintain the rules the properly. For their outer branches and staff, they maintain 16 rules.

2.6 Grameen Bank at A Glance

Number of members 8,934,874
Percent of female Members 7,594,643
Number of centers 140,262
Number of villages Covered 81,400
Number of branches 2,568
Number of areas 246
Number of zones 40
Amount of loans outstanding 144,504
(in million bdt)
Balance of members deposits 141,056
(in million bdt) [CITATION ANN17 \l 1033 ]

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 Chapter 3
Marketing Activities of Grameen Bank

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3.1 Marketing Strategy
The marketing strategy lays out target markets and the value proposition that will be offered
based on an analysis of the best market opportunities. In another words, marketing strategy is all
of a company’s marketing goals and objectives combined into a single comprehensive plan.
Marketing strategies are forward-looking, long-term planning techniques. Their main goal is to
gain a competitive advantage. A good strategy for marketing helps businesses identify their best
customers. It also helps them to understand the needs of consumers. With a good strategy, the
most effective methods of marketing can be implemented.

3.2 Marketing Strategies of Grameen Bank

3.2.1 Segmentation
Market segmentation is the activity of dividing a broad consumer or business market, normally
consisting of existing and potential customers, into sub-groups of consumers based on some type
of shared characteristics. Market segmentation can help to target only the people that are most
likely to become the company's satisfied customers or passionate content consumers. Company
break it into categories that have similar characteristics in order to segment a sector. Through
splitting an audience in this way, targeted advertising and personalized content can be more
effectively accomplished.

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Market segmentation always help to identify the target audiences and potential customers and
better understand them. Similarly, publishers can use market segmentation to deliver more
precisely targeted advertising choices and tailor their content to growing audience groups.

Grameen Bank segment their market in three ways. They are

i. Geographic Segmentation
Dividing a market into different geographic units such as nations, states, region,
countries, cities, or neighborhood. In the service of microcredit, Grameen Bank target
country’s zone and area and covered them by branches. To fulfill the microcredit service,
Grameen Bank has 40 zone, 246 area, 2568 branches and they covered 81,400 villages in
Bangladesh.
ii. Demographic Segmentation
Dividing the market into groups based on demographic variables such as age, sex, family,
income, education, religion and nationality. In the service of microcredit, Grameen Bank
always give the credit to the poor to improve their condition. Almost 95 percent of the
loan taker are women and married.
iii. Behavioral Segmentation
Behavioral segmentation divides buyers into groups based on their knowledge, attitude,
uses or responses to a product. Grameen Bank carries its services to the comfort zones of
poor door steps. It encouraged the women, the communities ' weakest section, to join the
Grameen brotherhood.

3.2.2 Targeting
A target market is a group of customers within a business's serviceable available market at which
a business aims its marketing efforts and resources. A target market is a subset of the total
market for a product or service.
Grameen Bank targets the poorest of the poor, with a particular emphasis on women, who
receive 95 percent of the bank's loans. Traditionally, women had less access to ordinary credit
lines and income financial alternatives. They were seen as having an unfair share of power in
decision-making in households.

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3.2.3 Positioning
Setting up a product to occupy a clear, distinctive and desirable place in the minds of target
consumers relative to the achievement of products. Formulating a product's strategic positioning
and a comprehensive marketing mix to meet customer requirements, by giving micro credit
Grameen Bank already establishes various offices across the world.
To positioning the market, Grameen Bank not only provide the microcredit but they also provide
some extra facilities to the loan taker to improve their poor situation. Grameen Bank main head
office situated in Dhaka, Mirpur 2 and they built 2568 branches to distribute the credit properly.
Each branch provide door to door service in 81,400 villages. Through their door to door service
they are providing quality service in their range in the country.

3.3 Marketing Mix

The "marketing mix" is a foundation model for businesses, historically centered on product,
price, place, and promotion. The marketing mix has been defined as the "set of marketing tools
that the firm uses to pursue its marketing objectives in the target market".

Effective marketing affects a wide range of fields as opposed to one message being fixed. Doing
so helps to reach more people, and by bearing in mind the four Ps, marketing professionals are
better able to keep focus on the ones that really matter. Focusing on a marketing mix helps
companies make strategic choices as new products are launched or current products are
reviewed.

3.4 Marketing Mix of Grameen Bank

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3.4.1 Product
Product is an item or service designed to meet the needs and desires of the customer. It is
important to identify what separates it from rival products or services in order to market a
product or service effectively. It is also important in determining if it can be sold in combination
with other products or services.
In the view of microcredit, Grameen Bank give small amount of loan and micro-enterprise loans
in six months or one-year terms and provide some extra facilities like education loan, housing for
the poor etc. it is true for Grameen Bank that, customer service is another important element of
product strategy.

3.4.1.1 Basic Loan

The main product of Grameen Bank is basic loan. As Grameen Bank business for the poor, any
poor member can take the loan. Many lenders can continue with this simple loan, cycle after
cycle, without any trouble and in the most suitable way to meet all their credit needs. Many
lenders are likely to face serious problems and difficulties. Somewhere along the loan periods to
repay the initial loan according to the timeline of repayment.

Conditions to get Basic Loan:

Grameen Bank Basic loan is for the poor but there are some rules to get this. The rules are –
 Amount of wealth is very low
 Landless, who process less than one acre of land
 Must be create a group of 5 to 9 woman members

Process of the Loan

A group of members must be neighbor and well known to each other. One group has to apply
center manager with recommendation of group leader. Bank will justify the application with
other documents and after complete the process Area manager will allocate the money to the
applicants.

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3.4.1.2 Housing Loan
The three most essential needs of humanity are a shelter over the head, food and clothing.
Realizing the value of the shelter over members ' heads, Grameen Bank initiated a housing loan
program in 1984. A house ownership infuses people with a sense of dignity, safety, and self-
respect that, in effect, provides a stepping stone for economic prosperity and social status
improvement. To build a simple tin roof house the ceiling for a housing loan is BDT 60,000. The
loan's average size is 13,994 BDT per borrower as 5 to 9 members in a team.

3.4.1.3 Micro-Enterprise Loans

Grameen Bank is not stopping to help these people cross the poverty line. When they do so,
Grameen Bank comes with a fresh financial support package to steer them to even higher wealth
creation levels. The Bank provides these rapidly moving members with larger loans, called
micro-enterprise loans. There is no restriction on the loan size. By the end of 2017, 10.73 million
microenterprise loans amounting to BDT 376.12 billion have been disbursed under this category
of loans. The average loan size is BDT 35,061 per year.

Grameen Bank give this type of loan for many sectors like fish and poultry feed, aquaculture and
fish trading, grocery shops, pharmacy, dairy farms, auto-rickshaw for transportation and business
of stones for construction work. In rural Bangladesh, a silent movement has been launched by
the microenterprise loan program by promoting leadership and entrepreneurial skills and
incentives for self-employment.

3.4.1.4 Higher Education Loans

Grameen Bank aims to assist members ' children even after their school-level research has been
completed. In 1997, Grameen Bank launched the Higher Education Loan program to enable
doors for promising children of its lenders to seek higher education at graduate and postgraduate
level in medicine, engineering, agriculture and other higher education programs.

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The loans are designed to cover all of the students ' expenses from the start to the end of the
course of the study. The loans cover fees for admission, course fees, paperwork costs, food and
accommodation, and other related costs. Loans under this program were granted to 53,882
students pursuing courses in fields by the end of the year under review.

3.4.1.5 Nursing Education Loans

Grameen Bank provide nursing education loans for the female children of Grameen bank
borrowers. To assist Grameen Bank lenders ' children in obtaining jobs at home and abroad, its
loans money to study at the Grameen Caledonian College of Nursing's which mantain
international standard 3-year Diploma in Nursing and Midwifery.

3.4.1.6 The Struggling Members (beggars) Loan

Within the traditional poverty alleviation system, beggars are the hardest to hit. In 2002,
Grameen Bank set up an ambitious scheme called the Struggling Members System to catch this
elusive community. The program's goal is to provide the beggars with financial services to help
them find a dignified way of life, educate their children and make them graduate to become
regular members of the Grameen Bank. Grameen Bank want to make sure that no one has to ask
for life in the villages.
There are some basic features in this loan program. The features are
 Existing rules of Grameen Bank do not apply to beggar members; they make up their
own rules.
 All loans will be interest-free. Loans can be of a very long term, in order to make
repayment installments very small. For example, for a loan to buy a quilt or a mosquito-
net, many borrowers are paying BDT 2.00 per week.
 The member receives a photo and name identification badge and a logo from Grameen
Bank. She should demonstrate this as she goes through her daily life, to let everyone
know that she is a member of the Grameen Bank and behind her working this national
institution.[ CITATION STR17 \l 1033 ]

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3.4.1.7 Grameen Bank Savings (Deposit Scheme)
Grameen Bank offers competitive interest savings to both member and non-member. Any citizen
of Bangladesh can deposit money at Grameen Bank.
1. Personal Savings
As a Bangladesh citizen anyone can open this account in bank. This personal savings has
two sectors, one for member of Grameen Bank and other for non-member.
i. For member of Grameen Bank
This is mandatory savings for member. At the first date of joining each member must
open this account by giving 70 taka. The minimum amount of saving is 20 taka for
each week. Any lender can fix own deposit amount of money his or her wish. Year
end interest calculate on the minimum balance of a month.
ii. For non-member of Grameen Bank
Without member any person from society can open this account. Like other
commercial bank this account is same. Per month anyone can deposit fix amount of
money and have withdraw system.
2. Fixed Deposit
From the year of 2000 Grameen Bank started their fixed deposit scheme. Member and
non-member both can take this deposit scheme. The minimum time period is 1 year and
maximum is 3 year.
3. Grameen Pension Scheme (GPS)
On 30 August, 2000 Grameen Bank started their pension scheme of 5 years and 10 years
vide for their members and employees to the future financial assurance. This feature is
not available for non-member. Grameen Bank motivate their members and employee to
save for the future.

3.4.2 Price
Price is the sum of money that customers have to pay to buy the goods. As far as Grameen bank
micro-credit is concerned, customers must pay a certain amount of processing fees and stamp
costs in order to obtain the loan.

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One of the factors affecting the company's own changes in pricing. For instance, many banks
have processing fees with an additional charge of 1% or 2% and other miscellaneous costs. But
in the competitive market, Grameen bank has withdrawn other costs and charges.

 Basic Loan
The interest of basic loan is 20% on decline basis. Borrower has to pay this money with 10%
more within one year in 44 installments. After repaying 23 installments borrower will get
more money according the rules and need.
 Housing Loan
For the housing loan the interest rate is 8% per annum and it is repayable over a period of
five years.
 Micro-Enterprise Loans
Mainly Grameen Bank Micro-Enterprise loan is one kind of small and medium enterprise
loan. This type loan interest rate is similar to some commercial bank interest rate. They took
18% to 22% of interest rate and it vary to business loan size.
 Higher Education Loans
In education sector the interest rate is little different.
During the study period the interest is 0%
After the study period the interest is 5%
 Nursing Education Loans
Like education sector for the nursing education the interest rate is 0%.
 The Struggling Members (beggars) Loan
No one can think take interest from struggling people. The Struggling Members (beggars)
Loan interest is 0%.
 Grameen Bank Savings (Deposit Scheme)
Personal savings interest rate for the members is 5% and non-member is 3.5% on
cumulative basis.
Fixed deposit interest rate for member is 5.5% to 6% and for non-member 4.75% to
5.25 %.
Grameen Pension Scheme (GPS) interest rate is 6% for both 5 years and 10 years
scheme.

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There are some extra feature Grameen Bank provide -
 Cost Effective
The Bank's interest rates are set with a view to the borrowers ' financial status and
repayment capacity. It does not adhere to the conventional wisdom of using their funds
value as a benchmark to measure interest rates for loans to the poor. Grameen Bank
interest rate is 10% at the flat rate. Grameen Bank offers very attractive interest rates for
deposits. Maximum rate is 12 percent.
 Easy Sanction
If the Credit Information Bureau is cleaned from Bangladesh Bank and all information is
clear from the borrower then the loan is approved on behalf of the customer.

3.4.3 Place
Place includes company’s activities that make the product available to target its customers. By
lending micro-credit, Grameen Bank spread out their unit offices almost all over the country.
Micro-finance tries to reach every poor family’s door to door to solve their demands. Decisions
on the marketing channel are one of the most important decisions faced by management. To
distribute the micro-credit properly Grameen Bank has already 2568 branches to cover up the
challenges. The branch office sends information to head office once in a week.

3.4.4 Promotion
Promotion means activities that communicate the merits of the product and persuade target
customers to buy it. For the marketing promotion advertisement is one of the major ways. Now-
a-days to focus customer Grameen Bank printing various leaflets, magazines and showing
banners in front of their respective unit offices.
 Door to door service
Door to door service is a common but effective promotion way to give knowledge about
micro-credit to poor. Conversion Rate Optimization or CRO knocks at the company's
door whether or not the customer has required any loan.

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  Market to non-Bank people
There are some people who don't have a bank account. They're dealing in cash. Such
kinds of customers can be connected to the banks by offering micro-credit. We are also
able to understand more about banking and have a good relationship with them.
 Bank for the Education
Every parent always wants to educate their child, but some scenario for the bad economic
condition parents cannot go further to provide proper education. Grameen Bank
promotion their business by providing education loan without any interest.
 Bank for the SME
Every commercial bank of our country prefers big amount of loan for large business. Still
there are some bank and financial organization who works for small and medium
enterprise loan. Grameen Bank is leading on them to help low income people by proving
loan.
 Neglected People
Some people are very scared of dealing with the bank. They were too afraid of the bank's
very plain suits. But they are doing good business and prospective clients. They could be
aimed at Grameen Bank's microfinance operation.

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 Chapter 4
Problems and Recommendations

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4.1 Problems Identified
During my intern time in Grameen Bank, I have found some problems. The problems are –

1. According to Grameen Bank annual report their interest rate for basic loan is 20 percent. But
collecting some information from their employee, the interest rate is more than 20 percent.
They are presenting false information to the poor.
2. Grameen Bank is always one step forward for their door to door service but some of their
field worker behavior is too bad with customer and some field worker present wrong
information about customer.
3. Grameen Bank vision is ‘Banking for the Poor’ and from the beginning they are giving
service to the poor. Now a days in some area they are providing micro-credit to middle class
people.
4. To established a small business and cross the poverty line, Grameen Bank give Micro-
Enterprise Loans to the poor. But, after some research most of the poor did not get enough
money to start the business and the interest rate was also high.
5. Still now there are many villages in Bangladesh where poor people do not know about
Grameen Bank activity. The main reason is bad promotion and other financial institutions are
more active than Grameen Bank.

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4.2 Recommendations
Although Grameen Bank has problems, some solution needs to be identified to solve the
problems. They should take the following steps to overcome the problems

1. For the poor more than 20 percent interest is too high. As they are working for poor and
provide micro-credit, they should lower the interest rate.
2. Bad behavior with customer will affect the demotivation of taking loan and in future this
problem will be big. Grameen Bank must replace this type of employee immediately.
3. Grameen Bank should continue the journey with their mission and vision. If they provide
loan to middle class people; the poor will suffer more and Grameen Bank may lose their
potential customer.
4. To cross the poverty and start a small business Grameen Bank should give enough money to
the poor by minimize the interest rate.
5. Now a day’s digital promotion is good but the poor does not deserve it. Grameen Bank must
effective their promotional way by going door to door.

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4.3 Conclusion
Working with Grameen Bank, I realized the micro-credit importance in our society for the poor.
The truth is, Grameen Bank outstanding work changed thousands of village people life. Day by
day they are working more and more for the poor and increasing their area to cover the
Bangladesh. One micro-credit idea just spread a lot and the journey is not stop yet.

After my examination in Grameen Bank, I can say that, without their service the poor would be
more poor. In Grameen Bank beginning time there was no micro-credit organization in
Bangladesh. But their journey just did not stop here, they also provide load for small and
medium organization, provide education loan, give extra benefit to their customer. Getting me
connected with such an organization is presently a matter of satisfaction for me as I have had a
generous affair of marketing communication practice. I discover the truth again, ‘it is easy to say,
but hard to do’. I also learn, with the strong marketing communication an organization can go too
far. Likewise, I can express that from this time-limit of this passage level position, I have taken
on multiple stuff that are incredibly essential to my job and training.

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References
1. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Microfinance#Impact_2
2. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Grameen_Bank
3. (2017). ANNUAL REPORT . Dhaka: Grameen Bank.
4. Intoduction . (n.d.). Retrieved from Grameen Bank:
http://www.grameen.com/introduction/
5. STRUGGLING (BEGGARS) MEMBERS PROGRAMME. (2017). Grameen Bank
ANNUAL REPORT 2017, 23-24.

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