PKSF

SEASONAL LOAN (SL): Supporting the opportunities to strengthen livelihoods

PKSF is trying to break the myth that endorses the notion of “one-size fits all” in terms of loan services and conditions associated with them. It has been commonly assumed that all types of investment must have similar pattern of return throughout the whole investment period while in reality there are exceptional situations, which demand specialized treatment. Moreover, the demand for credit and other financial services largely varies with the seasonal change and on special occasions. For example, PKSF has experienced higher loan demand at the beneficiary level before some occasions such as Eid and Puja. In consideration of all these particular situations, PKSF introduced its Seasonal Loan (SL) programme in the year 2005. Under SL programme, loans are given for less than one year depending on the nature of activities and can be repaid by borrowers in one single installment after sale of their products. Since the initiation of SL programme, PKSF has been financing its existing POs to provide short-term but profit-maximizing loan support to its existing members of RMC. This programme has been specifically designed for the small and marginal farmers who are involved in crop and non-crop farming activities. IGAs under this programme include many different activities, such as crop cultivation and processing, livestock, fisheries, agro-forestry, agro-processing. A huge number of beneficiaries have been benefited only with the beef-fattening programme under SL in the last few years. In FY 2010-11, PKSF has disbursed BDT 4 billion to its POs, which is 22.97% higher than that of the previous FY’s i.e, BDT 3.25 billion. On the other hand, POs disbursed a total of BDT 6.60 billion to their beneficiaries, which is 47.97% higher than that of the previous FY’s figure of BDT 4.46 billion.