Mercantile Bank signs credit guarantee deal with PKSF

Mercantile Bank PLC has signed an agreement with the Palli Karma-Sahayak Foundation (PKSF) to avail itself of credit guarantee services under the Credit Enhancement Scheme (CES).

Md Fazlul Kader, managing director of PKSF, and Md Zakir Hossain, deputy managing director and chief risk officer of the bank, signed the agreement at the former’s head office at Sher-e-Bangla Nagar, Agargaon in Dhaka recently, according to a press release.

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Under this strategic partnership, Mercantile Bank will extend credit and loan facilities to PKSF-enlisted partner organisations covered under the CES.

These loan disbursements will be fully backed by the credit guarantee facilities provided by PKSF, significantly reducing lending risks and increasing access to finance for small businesses.

The joint initiative aims to strengthen micro-enterprise financing across Bangladesh by safely channelling banking sector funds to rural, low-income, and marginalised communities, the release added.

Farid Ahmed, executive vice-president and head of the bank’s Gulshan branch, along with other senior officials from both organisations, was also present at the signing ceremony.