With a view to alleviating poverty of the disadvantaged people, PSKS launched its microfinance program since 1981 for poor people of the project area. PSKS made an agreement as partner organization with USCCB & SAP Bangladesh in 1981 and with PKSF in 1995. Now the organization has been implementing microfinance program both in rural and urban areas. It plays a very important role in the field of poverty alleviation. It also gives special emphasis on immediate and long-term needs of beneficiaries and for further integration into the development mainstream.
PSKS’s Microfinance Program offers a diverse range of collateral-free financing for Micro, Small and Medium Entrepreneurs along with customized savings products to meet the needs of the people of our society whom cannot get access to formal financial services. The Microfinance Program is currently operating through 25 branches across 03 districts of Bangladesh and serving over one lac members. PSKS’s Microfinance program has become a centre of innovation due to its people centric approach, emphasis on digitization, and contemporary upgradation.
Branch
Staffs
Members
Portfolio (Crore)
OBJECTIVES OF THE PROGRAM
The overall objective of PSKS’s microfinance program is to achieve sustainable development through improvement in the livelihood of the target people through financing and proper guidance to their IGA’s.
The other objectives are as follows:
- Ensure that eligible PSKS groups or members obtain ready access to a line of credit to enable them to undertake IGA, according to their needs, choice and capacity to operate.
- Ensure that loans are issued for both on-farm and off-farm activities and generate income and create. employment opportunity for them.
- Ensure savings mobilization as an alternative source of financing during emergency.
- PSKS assists group or households to develop the necessary skills and confidence in managing business and financial affairs.
- In addition to provide service, generate a modest surplus, ensure the financial sustainability of the micro-finance operation and contribute towards the costs of PSKS development operation.
COMPONENTS OF MICROFINANCE PROGRAM
PSKS’s microfinance program is a specially designed program for socio-economic development and poverty alleviation.
The components of this program are:
- Savings Products
- Credit Products
CREDIT COMPONENTS
Credit is the most significant component of the microfinance program. The members receive capital through credit facilities to improve their IGA’s and fight against poverty. PSKS has several special designed loan products as follows:
- Buniad (Credit facilities for the Ultra poor people);
- Jagoron (Basic credit facilities for rural and urban poor people);
- Agrosar (Credit facilities for An entrepreneur);
- Sufolon (Seasonal credit facilities for the farmers);
SAVINGS PRODUCTS
PSKS encourages its group members to mobilize savings in order to reduce their dependency on others. Group Savings develops a financial base of the group and they can utilize their savings in income earning schemes. By the way group savings helped them and play active role in family decision-making process to progress. Under this component, PSKS’s members have deposited BDT 24.16 Crore which was 25.93% of their outstanding loan
- General Savings
- Voluntary Savings
- Long Term Savings
