Profile of PKSF
Palli Karma Sahayak Foundation (PKSF) since its inception in May 1990 has been working as an apex microcredit funding and capacity building organization for eradicating poverty by providing microcredit to the poor through its Partner Organizations (POs). PKSF, in English, means “Rural Employment Support Foundation”. However, PKSF has expanded its operation to urban areas also.

Vision and Objectives of PKSF
PKSF’s vision is to alleviate poverty and improve the quality of life of the poor – the landless and the asset less people by providing them with resources for creation of employment for enhancing economic conditions. The major objectives of PKSF are:
a) To provide various types of financial help and assistance to non-government, semi-government and government organizations, voluntary agencies and groups, societies and local government bodies, so that, as POs and in consistence with the PKSF’s image and objectives, they can undertake activities with a view to generating income and employment opportunities among the economically most disadvantaged groups in the society.
b) To assist in strengthening the institutional capacity of POs, so that they can manage their programme in a sustainable manner.

Operational Strategy
The basic operational strategies of PKSF have been drawn from its objectives:
a) PKSF reaches its target groups – the landless and the asset less people – through its POs, it does not directly lend money to its target people.
b) It provides greater thrust to institutional development to both PKSF and its POs.
c) It favours no particular model; instead, innovations and different approaches based on experience are encouraged.

Funding of PKSF
PKSF mandate authorizes PKSF management to mobilize funds in the forms of grants, loans and contributions from a wide variety of sources which include the Government of Bangladesh (GOB), private individuals and organisations, foreign governments, international donors and lending agencies and capital markets.So far PKSF has received funds from the GOB, the IDA/World Bank, the USAID, the Asian Development Bank (ADB) and the International Fund for Agricultural Development (IFAD).

Micro-credit operation
PKSF carries out microcredit operation through Partner organizations (POs) in the following three steps PKSF carries out microcredit operation through Partner organizations (POs) in the following three steps.
1. Selection of the new PO
2. Financing the credit programs of the POs
3. Institutional development of the POs

Selection of the new PO
PKSF appraises the new organizations who are competent to operate microcredit programs for the landless-asset less people and comply with the ideology of the Foundation. The selection procedure is a continuous process and guided by a thoroughly designed ‘PO Selection Policy’.
Financing the credit programs of the POs:
After enlisting an organization as PO, PKSF provides loan to facilitate the ongoing microcredit program. The rate of service charge, which varies from 3% to 5%, depending upon the volume of the loan size, is much lower than the bank rate. This loan is recoverable in three to ten years. POs disburse loan among the landless-asset less for off-farm income generating activities and the landless-asset less peoples repay the loan with the service charge (usually at the rate of 12.50%) in fifty weekly installments.

Institutional development of the PO
PKSF gives emphasis on institutional development in order to enhance its own capacity as the apex microcredit institution and the capacity of its partner organizations (POs) for on-lending credit to the targeted clients. The institutional program, which is being implemented presently, includes measures to enhance financial sustainability of POs, strengthen accountability, improve staff skills and assess socio-economic impact microcredit programs.
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