An Analysis of the Marketing Activities of Grameen Bank

Abstract

Microfinance is a type of financial services that targets people and small enterprises that do not have access to traditional banking and associated services. Microfinance involves the supply of micro loans to low-income customers, the formation of savings and checking accounts, the provision of microinsurance, and the development of payment systems. In order to reach excluded consumers, who are often poorer sectors of the population who are also socially stigmatized and/or geographically isolated, microfinance services are aimed to assist them in becoming self-sufficient. (htt2) Micro finance supporters, as well as the participants in the Micro Credit Summit Campaign, think that more exposure to the industry would assist impoverished people in escaping poverty. For many, microfinance is a method of fostering economic development, employment, and growth by assisting micro-entrepreneurs and small enterprises; for others, it is a means of enabling the poor to live within their means more effectively and harness economic possibilities while reducing risks.

The effect of microcredit has been a source of substantial debate for some time. Some proponents argue that more employment and better wages will help to alleviate poverty. It is anticipated that this would result in improved nutrition and educational opportunities for the borrowers' children. Some believe that women are driven by the availability of microcredit. In the United States and Canada, it is considered that micro-credit will assist applicants in completing their assistance programs. For creating microfinance, the practice of lending small quantities of money at low interest rates to individuals who want to establish their own enterprises, Muhammad Yunus was awarded the Nobel Peace Prize. Despite this, he is not a supporter of capitalism. Microfinance was introduced to Bangladesh by Grameen Bank (also known as Grameen Bank), which began operations as a microfinance institution and community development bank in 1982.

The Grameen Bank was founded in 1976 by Professor Muhammad Yunus of the University of Chittagong, who launched a research expedition to investigate into the best approach to design a credit transit mechanism to give financial services to the agriculturally impoverished. As a result of national legislation passed in October 1983, the Grameen Bank was granted the authority to operate as a non-profit financial organization. The World Habitat Award was given to the Bank in 1998 for its "Low-Cost Housing Program." It was mutually beneficial for the financial institution and its creator, Muhammad Yunus, in 2006 when they were both awarded the Nobel Peace Prize. (htt)