Chapter One: Overview
Where there is informal economy condition of developing countries, women face a comparative disadvantage. In the northern area of Bangladesh, economic conditions forced rural women to adopt microfinance (credit and savings) as one major strategy for self reliance. Women go through relatively much more hardship than men in countries that are striving towards economic growth to compete with developed countries. Microfinance has been a proven successful vehicle for self-reliance of women in the northern poverty-ridden country areas of Bangladesh, where women are almost forced to adopt to this particular financial strategy due to their poor economic conditions. The principle of microfinance or microcredit is to provide bank and credit services to those otherwise are not eligible to get credit or finance because of their financial condition being way below the poverty level. So, in the context of normal banking and financial world where people with such financial liability and risk may be considered burdensome some the total economy, the concept of microfinance is truly innovative for so-called third-world developing nations. In those economies, with almost no substantial source of income and lack of credit history, women are furthermore ineligible for credit or loan. Therefore, women in countries like that fail to reach any financial strength due to their ineligibility to obtain modern banking or financial services.
In this dark area of economy, Professor Dr. Mouhammad Yunus shed some light of hope by successfully implementing this truly innovative idea of microfinance. Objectives:
* To measure the effects of microfinancial services on rural women. * By the way of analyzing the literature on microfinance and women empowerment. * To find out the beneficiaries and the benefits of microfinance. * To find out the evidence of women empowerment emanating from the provision of micro-finance. * To find out the issues or problems customers are facing in the provision of microfinance. * To find out how to improve micro financing to solve poverty among rural women. Questions:
* What are the awareness levels of microfinance products among the targeted population? * What are the effects on micro financial services?
* What are the evidence of women empowerment in targeted area? * What does the concept of microfinance entail?
* What is the role of microfinance?
* What are the benefits of microfinance / microcredit?
* Who are the beneficiaries from microfinance?
* What is the process of getting a microcredit from Grameen bank? * What problems customers are facing when they are applying for microcredit? * What is the impact of microfinance on its customers?
* Does microfinance helps poor people to come out from the curse of poverty? * How to improve micro financing to make it easier to reach people who actually can exploit this to improve their lives?
The researcher have chosen this topic because he thinks he really do like the concept of micro finance. He does have a lot of interest in micro financing. This is a unique, easiest and most effective way to reach and help people who are actually suffering from the curse of poverty. With the help of micro finance they actually can come out of from that curse. He wants to build his career in investment bank or banking sector. And his belief is micro financing is profitable as well. As we all know that most of the commercial banks in Bangladesh still didn’t launch microcredit as one of their normal running products. By and of this research he thinks that he will find out most of the aspect of micro finance and can approach this to any commercial bank in Bangladesh to encourage them to micro financing from which they can make profit as well.
In the beginning...