Micro Finance has proved to be one of the most effective tools for facilitating
socio-economic development through increased access to financial services. The economic landscape of NWFP is characterized
by a number of flourishing small-scale economic activities scattered throughout the cities, towns and rural areas. However,
these smaller enterprise entities have never been a focused market for formal financial institutions operating in this region.
Contributing significantly to income and employment generation, The Bank of Khyber (BOK) considers the promotion of
micro-enterprises as one of the alternative economic development strategies for the province. For this purpose the BOK
launched its micro business development in 1995 and rural financial services in 1997. This was the first formal and structured
initiative by a commercial bank to broaden the base for micro enterprise market. The initiative was further strengthened and
encouraged by various multilateral institutions such as Asian Development Bank (ADB), International Fund for Agricultural
Development (IFAD), KFW (German Development Bank) and Swiss Agency for Development Cooperation (SDC) through credit lines and
BOK aims to be the largest Micro Finance provider in NWFP on sustainable basis. Our main Objective is providing access
to financial services to the low income and disadvantaged segment of the society to raise their standard of living
with specific emphasis upon women. The pursuit of this objective will significantly contribute to the improvement of
employment opportunities, income generating activities and subsequently poverty alleviation.
Pursuing its objective the BOK provides micro enterprise and group loans for existing and new enterprises engaged in value
addition process, requiring technology improvement or working capital. BOK has made a modest beginning but a great potential
for growth is still to be explored over the years. It has disbursed total loans of Rs. 1.3 billion to more than 27,000 borrowers
with majority of the loans below Rs. 50,000 per client.