An Assessment of Borrower Satisfaction of Micro Finance Services in Grameen Bank of Bangladesh

Abstract

Purpose: This study is aimed to determine the nature and dimensions of microfinance service and to have an understanding on borrower satisfaction level using various determinants of Grameen bank in Bangladesh. Methodology: This analysis of the study is based on primary data collected from 312 respondents who are the borrowers of Grameen bank. Five point likert scale questionnaire is used for quantification and chi-square test is used for the analysis. Findings: The results indicate that economic conditions of the borrowers, their income, and loan facilities of the bank, interest rates on the funds, insurance policy of the bank, transparent transactions, and bankers’ behavior with the borrowers have significant influence on borrower satisfaction. The study has also drawn some inferences such as reducing the interest rate, arranging training programs for their officials, giving individual borrower attention, improving customer service department etc. to foster better banking services for superior borrower satisfaction. Limitations: The research study has focused on six districts in Bangladesh. This could be extended to more areas. Time period for the study could also be extended. Practical Implications: The outcomes of the study would be helpful in formulating customer services policies and improving the quality of services to ensure much satisfaction to the borrowers for future growth. Originality: This study mainly focuses on the core customers in microfinance sector and as the prevailing level of satisfaction is very much important to sustain the market, this study has been done with direct intersection with the borrowers.