Assessing Micro credit in Bangladesh with special reference to Grameen Bank :An Analysis

Micro credit means credit for small amount which is mostly used for getting out of vicious circle of poverty. After the independence of Bangladesh, Bangabandhu Shiekh Mujibur Rahman started working for the development of the poor people through opening of branches of commercial banks and Bangladesh Krishi Bank countrywide. He also stared rural development programmes through formal institutions. The Bangladesh Rural Development Board, one of those institutions, is charging a flat rate of 12 per cent interest rate on loans. At that time BRAC also started functioning, and the Comilla model became famous for rural development. Bangabandhu was always very careful so that no hidden charges were levied and the interest rate kept to the minimal. He showed the path of rural development of this country. Prof Muhammad Yunus tried to formalise a definition of micro credit with a zeal, which has become popular in countries enjoying free market economy. NGOs claim that the rural poor especially, the women have been benefited by micro credit. The main research question is whether Micro credit is really a myth in reducing poverty in Bangladesh. The study will also do SWOT analysis as well as Porter’s five forces model and Value chain model. The study period is January 2011 to October 2011.The study will use both primary and secondary sources.