Micro Credit & micro Finance

What is Microcredit?

Micro credits are small amounts of money loaned to clients by banks or other institutions. They can be offered, often without collateral, to an individual or through group lending. Giving loans to poor people has proven to be a success story. Most of the schemes make a profit, and they all help people to help themselves.

The only source of PKSF gives the fund to PPSS, and those are for different different sectors, like

  1. Rural Micro Credit (RMC)
  2. Micro Enterprise (ME).
  3. Micro Finance & Technical Support (MFTS).
  4. Urban Microcredit (UMC).
  5. Ultra Poor (UP).
  6. Seasonal Loan.
  7. Livelihood Restoration Program (LRP).
  8. Kuwait Goodwill fund for food security in Islamic country.
  9. Agricultural Sector Microcredit.
  10. Emergency Flood Restoration & Recovery Assistance Program (EFRRAP/DML).
  11. Learning and Innovation and Fund to Test New Ideas (LIFT).
  12. Samridhi Prokolpo (ENRICH).

Studies on microfinance (microfinance refers to loans, savings, insurance, transfer services and other financial products targeted at low-income clients) have shown that:

  • Microfinance help poor families to meet their basic needs;
  • The fact that the poorest and low-income people take advantage of these financial products leads to improvement in socio-economic conditions and guarantees stability and entrepreneurship development.
  • Through strengthening of women’s involvement in economy, microfinance improves the status of women, promotes gender equality and leads to achieve better conditions for households.
  • The efficiency of this kind of financial services depends on the period of their availability to potential clients.

edu3So long we exercised Rural Micro Credit. Besides that recently we have extended our loan program activities within urban areas too. In view of PKSF’s contemplation our effort we think this new action plan will prove its income generation oriented out look of the idle poor people of the area. The expansion of our Credit Operation to Urban area will ensure improvement life style of the poor alleviating poverty.

The only source of PKSF gives the fund to PPSS, and those are for different different sectors,like:1) Rural Micro Credit (RMC), 2) Micro Enterprise, ME(GOB), 3) Micro Finance & Technical Support (MFTS) 4) Ultra Poor, UP(GOB)5), Urban Micro Credit (UMC)6), Seasonal Loan, 7) Livelihood Restoration program (LRP), 8) Agriculture sector Micro Credit, 9) Disaster Management Loan (DML).