IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/50691.html
   My bibliography  Save this paper

Aspects of microfinance system of Grameen Bank of Bangladesh

Author

Listed:
  • Islam, Jamal
  • Mohajan, Haradhan
  • Datta, Rajib

Abstract

The microfinance system of Grameen Bank is a revolutionary tool to eradicate poverty of the rural people especially the women of Bangladesh. At present GB is the largest microfinance bank in Bangladesh and probably the biggest microcredit organization in the world. It provides loans to assetless and landless poor people whom no commercial bank give loan. Microcredit is the most useful and popular financial system in the world to face financial crisis of the poor people. Grameen Bank loan distribution has risk of default and sometimes the loans are used even dowry which is crime against women right. The rate of interest in Grameen Bank is very high and due to high interest rate the poor women can not use the loan in a high profitable business to bear this burden, so some of the borrowers lose lands and assets to pay the loan. The paper discusses both advantages and drawbacks of Grameen Bank with mathematical calculations in some details.

Suggested Citation

  • Islam, Jamal & Mohajan, Haradhan & Datta, Rajib, 2012. "Aspects of microfinance system of Grameen Bank of Bangladesh," MPRA Paper 50691, University Library of Munich, Germany, revised 27 Mar 2012.
  • Handle: RePEc:pra:mprapa:50691
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/50691/1/MPRA_paper_50691.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rajdeep Sengupta & Craig P. Aubuchon, 2008. "The microfinance revolution: an overview," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 9-30.
    2. Besley, Timothy & Coate, Stephen, 1995. "Group lending, repayment incentives and social collateral," Journal of Development Economics, Elsevier, vol. 46(1), pages 1-18, February.
    3. Mark Schreiner, 2003. "A Cost-Effectiveness Analysis of the Grameen Bank of Bangladesh," Development Policy Review, Overseas Development Institute, vol. 21, pages 357-382, May.
    4. Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI).
    5. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
    6. Richard Montgomery, 1996. "Disciplining or protecting the poor? Avoiding the social costs of peer pressure in micro-credit schemes," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(2), pages 289-305.
    7. Rahman, Aminur, 1999. "Micro-credit initiatives for equitable and sustainable development: Who pays?," World Development, Elsevier, vol. 27(1), pages 67-82, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohajan, Haradhan, 2013. "Economic Development of Bangladesh," MPRA Paper 50663, University Library of Munich, Germany, revised 23 Sep 2013.

    More about this item

    Keywords

    Grameen Bank; Microfinance; Joint liability; Loan; Risk of default.;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:50691. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.