Whitman School of Management at Syracuse University
Abstracts > Abstract Details JDE

Abstract Details

Financing the Microcredit Programs of Non-Governmental Organizations (NGOs): A Case Study
Vol. Volume 5, Number 2 August/2000

Dewan A. H. Alamgir
The Palli Karma Sahayak Foundation (PKSF) is an innovative institutional mechanism in Bangladesh for alleviating poverty. It is a government sponsored financial institution that provides loans to organizations to expand outreach of successful microcredit programs and assists to enhance organizational capacity. PKSF is an independent institution outside the government bureaucracy and is supervised by a Governing Body of distinguished persons. Since inception in 1990, it has enlisted 178 Partner Organizations (any recipient of loans from PKSF) who in turn reached 1.48 million rural borrowers, mostly women, with microcredit. This remarkable growth has been possible due to PKSF's strategy of operating through a network of Partner Organizations. The initiative has been successful in reaching the rural poor and in increasing their income. PKSF and many of its Partner Organizations have already achieved financial viability.

Keywords: Poverty alleviation, microcredit, financial institution for MFIs, lending to institutions, financial services for the poor, self-employment