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The Palli Karma-Sahayak Foundation (PKSF) has signed 12 separate credit guarantee agreements with 11 banks and one financial institution under its Credit Enhancement Scheme (CES) to expand financing for micro and small entrepreneurs.
Under the agreements, the participating banks and financial institution will be able to provide guaranteed loans worth Tk 28 billion to PKSF’s partner organisations during the 2026-27 fiscal year for financing micro-enterprises.
The participating institutions are 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).
Speaking at the signing ceremony at PKSF Bhaban-1 in Agargaon, PKSF Managing Director Md Fazlul Kader said the scheme was introduced to formally engage commercial banks in financing low-income people to become entrepreneurs.
Under the arrangement, banks will extend loans to PKSF’s partner organisations, which will then disburse the funds to micro-entrepreneurs. PKSF will provide credit guarantees and closely monitor the utilisation of the loans to ensure proper use, he said.
Fazlul Kader said the Credit Enhancement Scheme would play an important role in promoting inclusive and equitable economic growth by channeling bank financing to micro, small and medium entrepreneurs as well as marginalised communities.
The agreements were signed on behalf of PKSF by Deputy Managing Director Muhammad Hasan Khaled, while managing directors or deputy managing directors of the participating banks and financial institution signed on behalf of their respective organisations.
The Credit Enhancement Scheme was officially launched on July 1, 2025. In its first year, PKSF signed agreements with 10 banks and one financial institution. Under the initiative, six banks and one financial institution have already disbursed Tk 10.82 billion in loans for micro-enterprises through 26 PKSF partner organisations.