FAQs


Who establised PKSF

In 1990, the Government of Bangladesh established PKSF.

Who established Palli-Karma Sahayak Foundation (PKSF)? When was it established?

In 1990, the Government of Bangladesh established PKSF.

What is the legal status of PKSF?

Legally, PKSF is a “company not for profit” and is registered under the Companies Act of 1913/1994 as a “company limited by guarantee” with the Registrar of Joint Stock Companies. The legal status of PKSF allows the foundation flexibility and authority to plan and implement programs throughout the country and manage its affairs as an independent organization.

What does Not-for-Profit mean?

The main theme of “Not-For-Profit” is that net profit or net surplus income is not divided among the shareholders; it is always accumulated and re-invested in the organization as revolving fund.

How many members are there in the Governing Body?

There are 7 members in the Governing Body.

How many members are there in the General Body?

There is a maximum of 25 members in the General Body.

What is the process of selection of the Chairman of the Foundation?

The Chairman of the Foundation will be nominated by the Government of Bangladesh from among persons, not in the service of the Republic, having a record of service in activities of poverty alleviation and income generation and/or interest in such activities.

What is the process of selection of the Managing Director of the Foundation?

The Managing Director of the Foundation, also the Chief Executive Officer, shall be appointed by the Governing Body of the Foundation in consultation with the Government of Bangladesh.

What are the eligibility criteria for being a member of the Governing Body?

Members of the Governing Body comprise of the Chairman of the Foundation, the Managing Director of the Foundation, individuals having a record of service in activities of poverty alleviation and income generation and/or interests in such activities to be nominated by the Government of Bangladesh, who may or may not be in the service of the Republic (2), and members representing POs and/or individuals having a record of service in activities of poverty alleviation and income generation and/or interests in such activities, elected by the General Body in the Annual General Meeting (3).

What are the eligibility criteria for being a member of the General Body?

All members of the Foundation are members of the General Body. The Government may nominate 10 members from among persons associated with Government Agencies, Voluntary Organizations or private individuals, having record of services in activities related to poverty alleviation and income generation and/or interest in such activities. The remaining 10 members may be selected from among PO representatives, private individuals having record of services in activities related to poverty alleviation and income generation and/or interest in such activities. Anyone interested in membership will require 2 recommendations from existing members of the General Body and approval of at least 5 members of the Governing Body.

What is the duration of a member’s term in the Governing Body and the General Body?

Membership in the Governing Body shall be for 2 years and members are eligible for re-election for three consecutive terms. Membership in the General Body shall be for a period of 3 years for government members and 2 years for non-government members from the date of election. Members are eligible for re-election for three consecutive terms.

Who are the Program Participants of PKSF?

The program participants of PKSF are the extremely poor, the poor, micro-entrepreneurs, and marginal to small farmers.

What are PKSF’s sources of funds?

PKSF receives two types of funds – grants and loans – that are provided by the Government of Bangladesh and PKSF’s Development Partners through the Government of Bangladesh. The Development Partners are: International Development Association (IDA), Asian Development Bank (ADB), Department for International Development (DFID), European Union (EU), Kuwait Fund for Arab Economic Development (KFAED), U.S. Agency for International Development (USAID), International Fund for Agricultural Development (IFAD), and Japan Fund for Poverty Reduction (JFPR). 

What makes PKSF different from other institutions?

PKSF is different from other institutions in many ways:

  • It was established by the Government as a ‘not-for-profit’ organization. However, it is governed on a public-private partnership basis
  • It works as a quasi-regulator in developing the microfinance sector of the country
  • Government provides/channels fund to PKSF to carry out its operation.
  • PKSF is operated under the overall guidance of Independent Boards – a General Body and a Governing Body.
  • PKSF seeks to promote integrated development in which finance is an integral part. 
  • PKSF serves through Partner Organizations (POs).
  • PKSF is an apex organization, having a relatively small organizational set-up. PKSF has no branch offices.
  • PKSF implements programs and projects through a network of POs and service providers. PKSF also supports many institutional and capacity building programs for its POs.

What are the main activities of PKSF?

The four main activities of PKSF are its credit programme, institutional development programme, training programme, and research.

What are the rates of service charge of PKSF?

Loan Component

Service Charge -Declining Balance Method (%)
Rural Microcredit (RMC),Urban Microcredit (UMC), Micro Enterprise (ME),Seasonal Loan (SL),Agriculture-Sector Microcredit (ASM) 8.00-5.50 
“IGA Loan”Under “Enhancing Resources and Increasing Capacities of the Poor Households Towards Elimination of Their poverty (ENRICH)”
RMC,ME,SL,ASM Loan ComponentUnder“Kuwait Goodwill Fund for Promotion of Food Security in Islamic Countries”
Institutional Development  Loan 7.00-5.00
“Asset Creation”  and “Livelihood Loan”Under   “Enhancing Resources and Increasing Capacities of the Poor Households Towards Elimination of Their poverty (ENRICH)” 2.00%
Ultra Poor Program (UPP) 1.00%
Disaster Management Fund (DMF) 0.50%

 

What are the rates of service charge of POs?

Loan Component Service Charge(Declining Balance Method)
Rural Microcredit (RMC),Urban Microcredit (UMC), Micro Enterprise (ME),Seasonal Loan (SL),Agriculture-Sector Microcredit (ASM) Maximum 25.00%
“IGA Loan”Under   “Enhancing Resources and Increasing Capacities of the Poor Households Towards Elimination of Their poverty (ENRICH)”
RMC, ME, SL, ASM Loan ComponentUnder“Kuwait Goodwill Fund for Promotion of Food Security in Islamic Countries”
Ultra Poor Program (UPP) Maximum 20.00%
Disaster Management Fund (DMF) Maximum 8.00%
“Asset Creation” and “Livelihood Loan”Under   “Enhancing Resources and Increasing Capacities of the Poor Households Towards Elimination of Their poverty (ENRICH)” Maximum 8.00%

 

What is the process of loan repayment to PKSF available for POs?

The process of loan repayment depends on the nature of the loan services offered.  Rural Microcredit (RMC), Urban Microcredit (UMC), and Micro-enterprise loan have a 10 instalment repayment scheme to be repaid in 36 months, including grace period. The Ultra-poor Program (UPP) has a 6 instalment repayment scheme to be repaid in 24 months, including grace period. Agricultural Sector Microcredit (ASM) and Seasonal Loan usually provision for 1 instalment to be repaid within 14 months.   Programmes under ENRICH such as sustainable IGA Loan Programme, Asset Creation Loan Programme, and Livelihood Improvement Loan Programme offer 10 (36 month repayment period), 12 (42 month repayment period) and 8 (30 month repayment period) instalment repayment schemes respectively.  The Disaster Management Loan Programme and LIFT Programme have no specific number of instalments or repayment period as it is dependent on the nature of the loan services.  Partner Organizations repay their loan instalment through DD, Cheque, Pay order etc.  On line payment system is also available now.

Are there any branch offices of PKSF?

No

Aside from financial services, what other types of services does PKSF offer?

In addition to different financial services, PKSF also offers different non-financial services such as preventive health services, nutrition, education assistance, community-based small scale infrastructure development, micro-insurance, climate change mitigation, and safe water and sanitation activities for the target people under different projects and programmes.  Furthermore, PKSF gives technical support and market linkage services for Medicinal Plant Cultivation, Improved Cooking Stove, Solar Home System, Livestock Rearing and Value Chain Development to improve the livelihood of the poor. In case of a disaster, PKSF gives special support to the affected program participants as grant, conditional cash transfer and other modes of support. Additionally, PKSF plays a vital role in the institutional development of its POs and capacity enhancement of the targeted people. The training department of PKSF has continued to facilitate need-based training activities for the staff of POs and the people participating in its various programmes. 

What is the process of loan repayment to POs available for borrowers?

Borrowers usually repay loans in cash in predetermined weekly / fortnightly / monthly instalments or as balloon repayment, to authorized credit officers of the POs. However, in case of bigger microenterprise loans, borrowers may repay loans by using cheques.

What are the monitoring systems of PKSF?

PKSF has two modes of monitoring: onsite and offsite. Monitoring that is conducted through direct field visits as well as physical verification of the outcome of projects is known as On-site monitoring. In PKSF, On-site monitoring is conducted by the Operations Department, the Internal Audit Department, and External Auditors of PKSF. Off-site monitoring is conducted through analyzing information obtained from secondary sources, primarily monthly reports received from POs. PKSF cross-checks information with on-site monitoring for authentication, and prepares ratio and trend analyses used in financial decision-making for POs. At present PKSF is using a computerized data analyzer for that purposes.

Are there any special programs for farmers?

The special programs for farmers implemented by PKSF are the ‘Seasonal Loan’ (from 2006), the ‘Agriculture Sector Microcredit’ (from 2008) and the ‘Kuwait Goodwill Fund for Promotion of Food Security in Islamic Countries’ or KGF (from 2011). PKSF has also formed the ‘Agriculture Unit’ and the ‘Livestock Unit’ for extending necessary and sustainable agricultural technologies and capacity building support to marginal and small farmers, so as to increase agricultural production, as well as ensure food security. 

Does PKSF provide education services? Who is eligible to apply for these?

 

Yes. To improve the livelihood of the poor people, PKSF has started to focus on education in two ways: the Education Assistance Program and the Education Scholarship Program. The Education Assistance Program was started in 2010 to provide supplementary after-school tuition for all pre-primary and primary students i.e. Play Group, Class I and Class II students in the under ENRICH Unions.  The main objectives of the program are toencourage students to attend school as well as to reduce the dropout rate at the primary level. So far, a total of 31,642 students have enrolled in 1,184 afternoon education centres in 699 villages of 43 unions. These teaching centres target students who are generally slow learners and need extra help and time to grasp material taught at school. The Education Scholarship Program aims to help the meritorious SSC, HSC, graduate and post graduate students of poor households in ENRICH programme areas, who have achieved a GPA of 4.00-4.99.

 

Does PKSF provide health services? Who is eligible to apply for these?

Yes.PKSF provides preventive health services under a special program entitled the ENRICH and PRIME project. The objective of the health program is to improve the health conditions of the poor, specially focusing on women and children. They play a supplementary role with Government health care services. These programs are made available to all inhabitants of the ENRICH intervention area. In addition, PKSF has recently started a pilot project on health insurance for low-income groups through its POs. The program participants of the POs under selected working areas are eligible to apply for this service. 

What types of capacity building programs does PKSF offer?

PKSF’s capacity building programs include training, awareness building, skill enhancing seminars and workshop, technical assistance, exposure visits, research, and institutional development loans.  Partner Organizations are given loans at a nominal service charge for procurement of vehicles (Motorcycle, Bicycle), Computer, Laptop, Engine Boat, Photocopier, Training Complex, Training Equipments, Refrigerator, Mobile phone, Godown, Moisture Meter, Weighting Machine & Tools, G-Sacks, DESEL Generator, Milk Cane, Milk Pump, Laboratory Equipment, DESEL Pickup, Office Building etc.

What are some of the latest programs and initiatives undertaken by PKSF?

Health, education and other social issues are being introduced, or their scope has been expanded, along with financial and other necessary support. PKSF has launched different kinds of projects and programmes in this regard such as Community Climate Change Programme (CCCP), Bangladesh Climate Change Resilience Fund (BCCRF), Developing Inclusive Insurance Sector Project (DIISP), Kuwait Goodwill Fund for Promotion of Food Security in Islamic Countries, Skills for Employment Investment Program (SEIP), and Enhancing Resources and Increasing Capacities of Poor Households towards Elimination of Their Poverty (ENRICH).  In addition, PKSF has recently established two endowment funds: a Special Fund and a Programme Support Fund (PSF). Proceeds from these funds are used to meet the needs of the poor – often those who are already participating in PKSF supported programmes.  However, the outreach of these funds is not limited to PKSF members – non-members are also eligible, especially during natural disasters and severe illness.   Capitalizing on the accumulated experiences of three IFAD supported projects implemented by PKSF, the Promoting Agricultural Commercialisation and Enterprises (PACE) project supports the up-scaling of successful value chain interventions of agricultural microenterprise development, through providing business development services and untying knots in value chains of selected business clusters.  A Social Advocacy and Knowledge Dissemination Unit has also been introduced for the dissemination of new and popular information to the poor, this unit will collect, preserve and share knowledge through different media.

How can my organization become a Partner Organization (PO) of PKSF?

PKSF appraises various non-government, semi-government and government organizations, voluntary agencies, societies and local government bodies to select as POs which have gained experience and expertise, or have the potential to operate a successful microcredit program for self employment and income generation of the landless and asset-less.  PKSF follows a strict guideline for PO selection which can be divided into the following areas: 1. Organization, 2. Organizer, 3. Management, 4. Good governance, 5. Human resources, 6. Working area, 7. Field Activities, 8. Past performance, 9. Management Information System (MIS) and 10. Accounting System

What percent of POs’ loanable funds are contributed by PKSF?

Approximately 40% of POs’ loanable funds are contributed by PKSF. 

How does PKSF ensure that loans given to POs reach the people who need them?

PKSF ensures that our program participants receive loans by cross referencing data received from off-site monitoring with on-site monitoring where PKSF dispatches highly trained personnel to speak directly with the loan distributors and the program participants. Both scheduled and spontaneous checks are conducted as per the discretion of PKSF personnel to ascertain that loans are fairly distributed and efficiently used.

Where can I find PKSF’s publications?

PKSF’s publications can be found in the PKSF library at PKSF Bhaban. The library specialises in poverty alleviation and microcredit so that PKSF staff members can keep themselves updated about the latest developments in these areas. Available publications are also sold at the Counselling cell situated at the PKSF Bhaban.

Who has access to the PKSF library?

All of the employees and interns of PKSF, as well as anyone who has been granted appropriate authorization have access to the PKSF library.