The Palli Karma-Sahayak Foundation (PKSF) has signed 12 separate credit guarantee agreements with 11 commercial banks and one financial institution under its Credit Enhancement Scheme (CES). This initiative aims to expand financing for microenterprises across Bangladesh. The participating institutions will provide a total of Taka 2,800 crore in guaranteed loans to PKSF's partner organisations during the 2026-27 fiscal year.
Overview of the Agreements
The agreements were signed by PKSF's Deputy MD Muhammad Hasan Khaled and the managing directors and deputy managing directors of the respective banks and financial institutions. The participating institutions include BRAC Bank, City Bank, Prime Bank, NCC Bank, Trust Bank, Southeast Bank, Mercantile Bank, Commercial Bank of Ceylon, Dhaka Bank, Madhumati Bank, Shimanto Bank, and The UAE-Bangladesh Investment Company Limited (UBICO).
Objectives and Impact
PKSF Managing Director (MD) Md Fazlul Kader stated that the scheme was introduced to formally engage commercial banks in PKSF's initiative to transform low-income people into entrepreneurs. Under the scheme, PKSF's partner organisations will borrow funds from banks and disburse them to microentrepreneurs, while PKSF will provide the credit guarantee. This will ensure the proper utilisation of the loans and channel banking sector funds to small and medium entrepreneurs and marginalised communities, promoting inclusive and equitable economic growth.
Historical Context and Future Plans
PKSF formally launched the Credit Enhancement Scheme on July 1, 2025. During its first year, 10 banks and one financial institution joined the programme. Of them, six banks and the financial institution disbursed Taka 1,082 crore in loans through 26 PKSF partner organisations to support microenterprise financing. The new agreements are expected to further enhance the scheme's impact.
