Policy for the Utilization of Disaster Management Fund of PKSF

Policy for the Utilization of Disaster Management Fund

The policy for the utilization of the disaster management fund which will be used to provide support to the PKSF POs’ microcredit borrowers affected by natural calamities like floods, draughts and cyclones:

1.          The concerned PO will determine the size of the disaster loan to be given to a ‘beneficiary’ family after assessing its real need.

2.          Disaster loan will be used for rehabilitation of the affected family.

3.          Disaster loan will be given in one installment and the loanee will use this loan for self-rehabilitation.

4.          The PO will not claim service charge or any other charge for this loan.

5.          The PO will recover disaster loan in equal installments which are tolerable to the loanee. The PO will inform PKSF about the size, duration and repayment schedule before receiving fund from PKSF.

6.          Before providing this loan the PO will sign a loan agreement with the loanee wherein terms and conditions of the loan should be mentioned.

7.          The PO will maintain all records and accounts of disaster loan fund and supervise and monitor its use and repayment.

8.          The PO will send monthly report to PKSF with regard to the use and recovery of disaster loan. PKSF will supervise and monitor the use of the disaster loan.

9.          Under no circumstances, the PO will use the disaster loan fund for other purposes. This fund will be treated as a part of the POs’ ‘Disaster Management Fund’ in which the PO shall have its own contribution.

Following clause ‘9’ the PO will contribute a specific portion of its surplus service to this fund on a quarterly basis.