Written by The Banking Post
Palli Karma-Sahayak Foundation (PKSF) has signed credit guarantee agreements with 11 commercial banks and one non-bank financial institution (NBFI), paving the way for Tk 28 billion in guaranteed loans for microenterprise financing in the 2026-27 fiscal year.
Under the agreements, the participating institutions will provide a combined Tk 28 billion in loans to PKSF’s partner organisations, which will then lend the funds to microentrepreneurs across the country.
The participating institutions are BRAC Bank PLC, City Bank PLC, Prime Bank PLC, NCC Bank PLC, Trust Bank PLC, Southeast Bank PLC, Mercantile Bank PLC, Commercial Bank of Ceylon PLC, Dhaka Bank PLC, Madhumati Bank PLC, Shimanto Bank PLC and The UAE-Bangladesh Investment Company Limited (UBICO).
Speaking at the signing ceremony at PKSF Bhaban in Agargaon, PKSF Managing Director Md Fazlul Kader said the Credit Enhancement Scheme was introduced to bring commercial banks into PKSF’s efforts to help low-income people become entrepreneurs.
Under the scheme, PKSF’s partner organisations will borrow from commercial banks and disburse the funds to microentrepreneurs, while PKSF will provide guarantees for the loans, he said.
The agreements were signed on behalf of PKSF by Deputy Managing Director Muhammad Hasan Khaled, while the managing directors and deputy managing directors of the participating banks and financial institution signed for their respective organisations.
The Credit Enhancement Scheme was launched on July 1, 2025. In its first year, PKSF signed agreements with 10 banks and one financial institution.
During that period, six banks and one financial institution disbursed Tk 10.82 billion in loans to 26 PKSF partner organisations to finance microenterprises.
