SKS Microfinance, the fastest-growing microfinance institution in the world, has ambitious growth plans for Uttar Pradesh.  The MFI plans to increase its branch network to 168 across 40 districts to service 5 lac members by 2009.  Currently, SKS Microfinance has a member base of 75,000 poor women across 18 districts of the State. Collateral-free loans worth Rs. 68 crore have been disbursed and the total outstanding amount is Rs. 47 crore in the State.

"One crore people of Uttar Pradesh live below poverty line, requiring Rs 21,000 crore as loans.  SKS gives collateral-free loans to poor women for income generation and we enjoy 99.5 % recovery rate.  We hope to have a presence in 40 districts by 2009," says Anil Kumar, Regional Manager-Uttar Pradesh, SKS Microfinance. 

SKS presently operates in Lucknow, Moradabad, Bareilly, Kanpur, Varanasi, Pilibhit, Unnao, Deoria, Hathras, Faizabad, Fatehpur Sikri, Faizabad, Firozabad, Raibarely, Barabanki, Mathura and Agra.  SKS Area offices are located in Agra, Lucknow, Barielly, Varanasi, Gorakhpur.  54 branch offices are located across the 18 districts.

Aligarh, Ambedkarnagar, Azamgarh, Balrampur, Basti, Bulandhahar, Chandouli, Ghazipur, Gonda,, Jaunpur, Kaushambi, Khiri, Kushinagar, Maharajnagar, Mau, Mirzapur, Shahjahanpur, Siddhartnagar, St. Kabir Nagar, St. Ravidas Nagar, Sultanpur are the districts that SKS plans to expand to by March '09.

Borrowers use loans largely for livestock and setting up trade followed by production and services. Returns on borrower enterprises average 100%, enabling them to earn income, build assets, and get out of poverty.  SKS uses a lending model that was developed by Nobel Prize winner, Muhummad Yunus of the Grameen Bank in Bangladesh. The system involves forming groups of women who serve as guarantors for each other, thus enabling SKS to provide loans without taking any collateral from borrowers.

Sourced From: Sampark Public Relations Pvt Ltd