PKSF inks deal with 12 financial institutions
In a major boost to micro-entrepreneurship and financial inclusion, the Palli Karma-Sahayak Foundation (PKSF) on Monday signed 12 separate credit guarantee agreements with 11 commercial banks and one non-bank financial institution under its Credit Enhancement Scheme (CES).
The landmark deal will pave the way for participating financial entities to extend Tk 2,800 crore in guaranteed loans to PKSF’s Partner Organisations (POs) during the 2026-27 fiscal year, specifically aimed at expanding financing for microenterprises across the country, according to an official press release published on Monday.
The participating commercial banks are BRAC Bank, City Bank, Prime Bank, NCC Bank, Trust Bank, Southeast Bank, Mercantile Bank, Commercial Bank of Ceylon, Dhaka Bank, Madhumati Bank, and Shimanto Bank. The participating financial institution is The UAE-Bangladesh Investment Company Limited (UBICO).
Addressing the signing ceremony held at PKSF Bhaban-1 in Agargaon, PKSF Managing Director Md. Fazlul Kader highlighted the strategic importance of the initiative, stating that the scheme was specifically designed to formally bridge the gap between commercial banks and low-income individuals, helping them transform into successful entrepreneurs.
Under the framework of the scheme, PKSF’s partner organisations will borrow funds directly from these commercial banks and disburse them to grassroots micro-entrepreneurs, while PKSF acts as the credit guarantor to mitigate risk for the lending institutions.
“Rigorous and close monitoring by PKSF will ensure proper utilization of the disbursed loans,” Kader noted.
He added that the CES would play a crucial role in redirecting surplus banking sector liquidity toward small and medium entrepreneurs as well as marginalized communities, thereby driving inclusive, sustainable, and equitable national economic growth.
The agreements were officially signed by PKSF Deputy Managing Director Muhammad Hasan Khaled on behalf of the foundation, while the managing directors and senior executives represented their respective banks and financial institution.
PKSF formally rolled out the Credit Enhancement Scheme on July 1, 2025, to mobilize private sector capital for rural development. During its inaugural year, 10 commercial banks and one financial institution joined the initiative.
Among them, six banks and the financial institution successfully disbursed Taka 1,082 crore in guaranteed loans through 26 PKSF partner organisations, providing crucial financial backing to microenterprises nationwide.
This expanded Taka 2,800 crore commitment for FY 2026-27 reflects growing banking confidence in PKSF’s credit guarantee model to empower local businesses.
