Sufolon : A program to promote agriculture and livestock
PKSF launched the Seasonal Loan (now known as Sufolon) program in 2006. This groundbreaking program of PKSF offers flexibilities and has become a key core program of PKSF covering a major share of the yearly loan disbursement. Since inception, this unique loan product has created tremendous impetus for investment in different IGAs such as crop cultivation and processing, livestock, fisheries, agro-forestry agro-processing etc. The provision of the loan repayment in a single installment after the sale of the product has made it very popular among the borrowers, especially those engaged in beef fattening and crop cultivation.
The extension of financial services to the poor community is increasingly becoming very important as a means of poverty reduction interventions. People in some areas of the country have lack of access to financial support. The agriculture sector is one such area where financial service providers are not inclined to support. The high degree of risk involved in this sector is one of the main reasons for this aversion. PKSF started the Micro Finance for Marginal and Small Farmer Project (MFMSFP) in 2005. The success of this project led PKSF to design and introduce the Sufolon (Agriculture Sector Microcredit) Program in 2008.
Sufolon offers comprehensive training program for farmers and staff of the MFIs to develop their capacity in agricultural lending. Attention is also given to research, development of high-yielding seeds, management of irrigation, mechanized and technology-based farming, and vocational education to produce skilled human resources and increased productivity.
Lending activities under Sufolon
- In FY 2018-19, the loan disbursement of PKSF to its Partner Organizations (POs) under Sufolon was BDT 8.78 billion and the outstanding amount of loan with POs under this program reached BDT 5.28 billion.
- During the FY 2018-19, POs’ disbursement to borrowers was BDT 44.43 billion and the outstanding amount of loan as on 30 June 2019 was BDT 24.05 billion.
- During the FY 2019-20, the amount of loan disbursement from PKSF to POs was BDT 8.20 billion and the outstanding amount of loan as on 30 June 2020 was BDT 5.72 billion.
- During the FY 2019-20, POs’ loan disbursement to borrowers was BDT 46.53 billion and the outstanding amount of loan as on 30 June 2020 was BDT 26.67 billion.
- During the current FY (from July to September), the loan disbursement from PKSF to POs and POs to borrowers was BDT 1.53 and BDT 11.48 billion respectively.
- Up to September 2020, the total number of borrowers stood at 0.83 million.
- In September 2020, the average loan size under this program was BDT 29,832.
Trend of loan disbursement under Sufolon
Up to September 2020, the cumulative loan disbursements from PKSF to POs and POs to borrowers were BDT 98.14 and BDT 340.06 billion respectively.