Palli Karma-Sahayak Foundation (PKSF) has signed twelve separate Credit Guarantee Agreements with 11 banks and 1 non-banking financial institution (NBFI) under its Credit Enhancement Scheme (CES). The participating institutions are BRAC Bank, City Bank, Prime Bank, NCC Bank, Trust Bank, Southeast Bank, Mercantile Bank, Commercial Bank of Ceylon, Dhaka Bank, Modhumoti Bank, Shimanto Bank, and the UAE-Bangladesh Investment Company Limited (UBICO).

Under these agreements, the financial institutions will provide guaranteed loans worth a total of BDT 2,800 crore to PKSF’s Partner Organizations during the 2026-27 fiscal year to support financing for microenterprises.

Speaking at the signing ceremony, PKSF Managing Director Md Fazlul Kader said, “PKSF introduced this scheme to formally engage commercial banks in its efforts to help low-income people become entrepreneurs. Under the scheme, banks will provide loans to PKSF’s Partner Organizations, which will then lend the funds to microentrepreneurs. PKSF will provide the credit guarantee, while its close monitoring system will help ensure the proper use of the loans.”

He added, “Expanding access to bank financing for micro and small entrepreneurs as well as marginalized communities is essential for achieving inclusive and equitable economic growth. PKSF’s Credit Enhancement Scheme will play an important role in this regard.”

The agreement signing ceremony was held on 20 July at PKSF Bhaban-1 in Agargaon, Dhaka. On behalf of PKSF, Md Hasan Khaled, Deputy Managing Director, signed the agreements, while the Managing Directors and Deputy Managing Directors of the respective banks signed on behalf of their institutions.

The Credit Enhancement Scheme was officially launched on 1 July 2025. In its first year, PKSF signed agreements with 10 banks and 1 NBFI. Since then, BDT 1,082 crore in loans has been disbursed under the CES through 26 Partner Organizations to support the latter’s microenterprise financing.