TANY LOAN

A Life Enhancing Tool For The Poorest

As student of PGDRM, I have been taught what is poverty? Real world is very different, during
my four week internship with the Grameen Bank, I have come to realize that the Bank’s
microfinance approach and professor Yunus’s concept of social business have great potential to
help us revisit and revise how we use foreign aid.

Grameen Bank gives four kind of loans – 1.BASIC LOAN (loan amount 5000tk – 40,000tk)
interest rate is 20 % (decline rate)

2. EDUCATION LOAN (amount depends on course) - during the study period (3-5 yrs) interest
rate 0%

- After study
period 5% interest (simple) .

3. HOUSE BUILDING LOAN (25000TK – 30000 TK) interest rate 8%

4. STRUGGLE LOAN (for Beggars, amount 2000tk – 5000tk interest rate o %)

Grameen Bank offers very attractive interest rates for deposits. Minimum interest offered is
8.5%, maximum rate is 12%.
  Financial result of 2009 – during the year bank earned a profit of BDT 372 million and
declared 30% cash dividend for the year.
 Housing for poor
 Micro-enterprise loan
 Scholarships for the children of Grameen Bank members.
 Loan insurance and life insurance
 Village phone
 Beggars as a members
 Success of members in election bodies
 Policy of opening new branches
 Computerized MIS and according system
 Stars for achievement(green, pink, blue violet, red )

We went to BOGRA its 215 kilometer far from DHAKA city. We stayed there at MALONCHA
KAHALU SAKHA .On the way we visited a sister organization of Grameen Bank. Throughout all
of my observations in field visits to the Bank’s centers and branch offices, I have always been
especially struck by the bank’s commitment to the seemingly simple, but powerful philosophy
that the bank should come to the poor people, the Bank’s adherence to this philosophy makes
it possible and meaningful to directly deliver loan money into the hands of its borrowers. Part
of the core of the Grameen Bank’s operations are its employees and more importantly the
willingness of the Bank’s employees to work and live in the villages, the home of the Bank’s
borrowers. Over the course of the time I spent in the villages, I witnessed multiple instances
where the branch manager demonstrated an intimate familiarity with the circumstances and
lives of the borrowers in that village.

The branch manager was able to tell us the detailed specifics of how one borrower invested
her loan as well as the hardship another borrower face in paying off her loan as a result of her
husband’s illness. The dedication of the bank to work on the local level, from the bottom-up
instead of the conventional top-down approach, is a key to its success. This bottom-up
philosophy means that the bank can actually watch its money be loaned directly to its
borrowers and does not need to rely on outside parties to distribute or spend the money on
behalf of the poorer people.

At the same time I have noticed that the effect of the money itself is multiplied when the
money itself is directly given to the peopleit is supposed to benefit ; the people who need the
money know how best to spend and utilize it. When I was at the Maloncha kahalu sakha
branch, the avareg loan size the borrowers are taking a basic loan was about10000 to 20000
taka(7000 to 14000 rupee), even it was amazing to see how borrowers can stretch their loan to
make every single Taka count. When I spoke to them ,they explained to me in depth how they
used their loans and the profit they were making from their businesses to continually expand in
their businesses, ive to others family members in need, save for future.The Grameen Bank
never imposed strict ideas onto their borrowers as to how borrowers should be utilizing their
loan or how they should spend their money. By giving money directly to the borrowers, the
Bank is able to draw upon its borrowers’ self- capacity and ingenuity.

At the same time, what I have come to realize that “people are suffering so much for so little”,
problem is very difficult, but Grameen Bank is trying to solve their difficult problem very simple
way, if I give you an example then you realize that how much they people are dedicated to their
job, my 5 days field visit I went to MALONCHA KAHALU SAKHA, BOGRA , one centre manager is
there name PARUL PARVEEN.

She is married her husband is a worker of a ship company in Singapore . During this time
period 2nd day we went to meet with a beggars because she took struggle loan for her survival. I
will discuss about her in details in next case study,after meeting with her we came back to
branch at 8p.m see nobody is their very obvious because all centre managers start their routine
work from early morning (6.30-7a.m) and after half an hour we saw Parul is in the office and
calculating something ,really I got surprise to see her dedication to the work, during the
conversation we came to know that she has a beautiful daughter and Parul is very happy today
because her husband came from Singapore after 4yrs and he will stay one month with them,
audit is coming soon for that she is rechecking her consumers pass book and GPS book, I think
its enough to prove that why Grameen Bank is a noble prize winner organization, hats off to
Parul and hats off to Grameen Bank.

CASE STUDY1: 8th September my first field visit at Nagori

Place – Nagori

Branch name – Nagori Kaligaunge Branch

Branch manager’s - Rubina Yashmin

Centre name and no - Panajora & 50/m

Centre manager - Md. Sahisur Jaman Joarder

Centre head - Parveen (34yrs)

 Groups no - 9

Date - 08/09/ 2010

Centre head PARVEEN is a widow, she is 32 yrs old. She has two children(1 daughter & 1
son ).now She is staying at hers mother’s house.

Before joining in Grameen Bank : she used to do some cluster work(pat). she had a small
kachha house , even she did not manage proper food for her children. She did not have proper
Sanitation facilitiesfor her and family.

After joining in Grameen Bank : 10 yrs back she joined as a borrower of Grameen Bank with
others 4 women in the village. Now she is center head and active borrower of GB.Even she
increased her social status because she borrowed the money from Grameen Bank and she
extended her house now she has a bi house with tin roof, purchased a new machine , she is a
very good tailor in the village. Even she purchased agricultural land and some assets for her
family like TV, wooden furniture , steel almirah, Electricity is available in her house. She wants
to open a small women garments farm in her house, she needs money for it and already
applied for one lakh loan to the Grameen Bank. Her son is in class seventh and daughter is in 2 nd
year of graduation after that she is ready to take educational loan for her daughter higher
education. If grameen bank gives the chance to study in Glasgow university for nursing training
she is ready to send her daughter to abroad.

CASE STUDY 2 : BASIC LOAN

Place - Maloncha

Branch - Maloncha kahalu sakha

Center name - Baropukuriya

Center manager’s name - manik chand debnath

Center head - kohinur

Groups no -5

Loan type - Basic loan

JARINA BEGUM , 45 yrs old, active member of Grameen Bank from 1995. She is a mother of
one son(Enamul) ,age 20yrs ,10th pass ,now he is a young farmers and one daughter(Rabia) age
16yrs she is in class seven.now she has 15,000 taka loan at GB.

Before joining at Grameen Bank : they had a small house and her husband was a cold storage
labour , their income was 3000 taka per month. It was very tough to manage proper food for
children. Even they did not have furniture , agricultural land nothing.

After joining at Grameen Bank : 1. Tin roof house 2. Tube well 3. Sanitation facilities 4. 3 bigha
agricultural land 5. Wooden furnitures 6. Recently purchased a young cow cost 20,000 taka.
Now their income is more than 15,000 taka his son and husband are doin agricultural activities
and they have one cow , they are selling 4 liter milk per day that is 160 taka per day.

TOTAL ASSETS : 2 lakh taka

CASE STUDY : 3

Place - Maloncha

Branch - Maloncha kahalu sakha

Centre name - baropukuriya

Center manager - Manik Chand Debnath

Loan type - Education loan

Name of the student - Md. Masrum Rabbani

Age - 24 yrs

Masrum has two sisters(married), mother , father and two elder brothers(married). His elder
brothers did not support him financially and mentally. He is a student of Government Ajijul
hauk college. His subject is Islamic Histiry and Culture (hon, 3 rd year). Total amount of loan had
been sanctioned from GB is 77,000 taka and total cost is 1,50,000 taka for four years. He has
been taking his loan installment from first year. He wants to be a professor of Islamic History
and Culture. He is teaching math and English In bogra coaching center. His monthly income
3000 taka/month, he helps his family as much as he can and saving some money to repay the
loan in future. Father have not any agricultural land, he takes land from others and give them a
percentage of corps. From class eight his father did not give any financial support for his study.
Even when he realize that next two three months are very tough to manage his all expenses, he
come back home to stay for one and two months .He is a very good student in their college and
after finishing his bachelor will join for masters.

CASE STUDY : 3

Place - Pabohara

Branch - Maloncha kahalu sakha

Centre name - pabohara

Center manager - Parul parveen

Loan type - Education loan

Name of the student - Ive sultana

Age - 21 yrs

Ive is a student of Government Ajijul hauk college, she is doing her honors in political science.
She has a nice family mother(Merina 42 yrs), father(Amzad hussion, 48 yrs), and two younger
sisters (Ashmani 17 yrs and married, Afrin 12 yrs 8th class). Her mom manufacturing some
handloom (daily 5-6 pieces),1 piece manufacturing cost is 18 taka , time takes I hour. She sail it
30 taka ,net profit 12 taka/p and per day income is 60 to 70 taka and in a month it is 1800 taka
to 2000 taka. Father is a farmer but they have not their own agricultural land ,he takes from
other and give them some percentage of crops.Ive wants to be a professor of political science.
CASE STUDY 4 : STRUGGLE LOAN

Place - Pabohara

Branch - Maloncha kahalu sakha

Centre name - pabohara

Center manager - Parul parveen

Loan type - Education loan

Name of the student - Johura (beggar)

Age - 70 yrs

Johura is a widow, one year a back she was a beggar now she completely stopped begging. She
borrowed 2000 taka(0% int rate) as a struggle loan, even its very nice to hear that she is going
to repay her loan next week . Now she is sailing hand loom, purchasing cost 50taka per piece
and she sails it 55 taka. now per day her income is 20 taka but when she was begging, earned
1800 gm rice. Now she is very happy and told us next week she will take a new loan that is 4000
taka and branch manager said to her that he will give it, because they have a aim and it will
help them to reach their goal. Really it was very nice filling to see her smile in her wrinkle face.
What a concept introduced by the great man prof. yunus, hats off to you.

GRAMEEN DANONE FOODS LTD : It is a purely social business Enterprise .The Grameen group
and group DENONE joined forces since march 2006 to create Grameen Dedone Foods Ltd,a
social Business based in Bangladesh. Grameen Dedone Foods Ltd’s is to reduce poverty by a
unique proximity Business model that will provide daily healthy nutrition to the poor of
Bangladesh.\

NUTRITIONAL SITUATION IN BANLADESH :-

 Health concerns - 5O% children are suffering from malnutrition, especially in rural areas.
 Macro nutrition issues – overall energy deficiency, particularly among young children
(between 24% and 4% gap vs RDA).
 Micro nutrition issues –
1) Iron (49% among young children).
2) Vitamin B2
3) Calcium
4) Vitamin C
5) Vitamin A
6) Iodine and zinc
Lack of micronutrients can impair mental development; alter the functioning of immune
system, compromise proper eye sight, etc. Malnourished children are more often sick
and less attending school.
Malnutrition in Bangladesh is a various circle: it is not only a question of public health
but also of economic development.

GRAMEEN DENONE FOODS’ OBJECTIVES:

1. Bring health through nutrition at very affordable price for all Bangladesh
children.
2. Improve living conditions of the poorest people of the community by involving
them in all stages of the business model (supply, production, sales), creation jobs
and improving local competencies
3. Preserve non-renewable resources as much as possible
4. Be profitable to ensure economic sustainability.

SHOKTI+, A FORTIFIED YOGURT TO MEET NUTRITIONAL NEEDS OF

BANGLADESH CHILDREN
Shokti+doi literally means “yogurt to give strength”

Shokti+ is a yogurt made with cow milk , date molasses and sugar. It is a matural source of
calcium and protin, which are essential for healthy growth and bones. It also contains live
fermenting cultures that help to reduce the severity and duration of diarrhea.

Three different product are there 1) 60 gm yogurt – 7 taka (no protein)

2) 80 gm yogurt – 12 taka (no protein)

3) Extra protein – 8 taka

 S
(
g
x
lz
s
3
f
i)
v
c
u
d
p
e
h
A
m
r
F
n
o
ti
a
t
,
explained the process how the yogart is making in this factory