SKS Microfinance Pvt. Ltd,, the new generation microfinance company, has launched operations in Kerala. SKS Microfinance, a registered NBFC, aims to empower poor women to become economically self reliant by giving them access to income-generating loans and other financial services in a sustainable manner. Kerala is the 15th state for SKS operations in India. 

To begin with, SKS has launched operations in Palluruthy in Ernakulam and at Thriprayar in Thrissur district.   From Pallurathy, SKS plans to reach out to villages in and around Aroor, Kumbalangy, Chellanam. From  Thriprayar, the company plans to reach out to villages in Thalikulam, Kodungallur, Anthikkad, Mullassery, Chavakkad and Cherpu.   In the coming days, the company plans to open branches in Palakkad, Alapuzha, Kollam, Malappuram and Kottayam districts.  It plans to have a presence in all 1467 villages across 14 districts of the state.   Branches will also be opened in semi-urban and urban areas where there is potential. 

Initially, SKS gives loans up to Rs.12,000 to members without any collateral   The beneficiaries are able to access these loans by forming groups of five with each member standing guarantee for the other four in the group.  The repayments are collected over 50 weeks in weekly installments. A further mid-term loan of up to Rs.4000/- can be accessed by the members after 25 weeks.

 Announcing the launch of operations in Kerala, SKS Microfinance Chief Operating Officer M.R.Rao said, " Kerala has been on our growth map for some time. The state has 19 lac poor households of which 3.6 lakh are headed by women.  The state has a huge population that is dependant on fishing and handicrafts.   These become the obvious choice of members we are trying to reach."

"We have had very good response from our first two branches.  We have enrolled over 800 members at these branches already.   We hope to reach out to 7000 poor households this fiscal," according to Mr K.V.Rao, Vice President-Member Services, SKS Microfinance.

Generating jobs

Significantly, 92 percent of the 5100 SKS employees are from the social fabric that SKS serves. In Kerala, SKS has started operations with seven people and hopes to increase the strength to 40 this fiscal.   SKS typically employs matric pass youth as Field assistants and trains them in basic computer skills and provides them an opportunity to work in their own villages.   A Field Assistant is able to earn between Rs.3890/- and Rs.10,000/- per month. 

"This has been our biggest success story since we not only give an opportunity to the underserved sections of society to elevate themselves out of poverty but we also generate employment opportunities for the young members who are Intermediate pass in these families.   Many of them have grown within the organization and are now heading the branch offices," explains SKS Microfinance Regional Manager Kiran Kumar.

Our Products

SKS Microfinance offers loan and insurance products.  An income Generating Loan Aarambh is given to the member in the beginning of the 50-week loan period.  A Mid-Term Loan Vriddhi is given when the member is 20 weeks  into the loan cycle. The maximum loan given out is worth Rs.20,000/- and an effective interest of 24% is applicable. Repayments are on a weekly basis. An emergency loan Raksha worth Rs.1000/- is given free of interest to tide over sudden emergencies in the family like death, hospitalization etc.  

SKS also offers a loan insurance cover for all its members and their spouse.    The loan cover fee is 1% of the loan amount and the policy covers the entire loan amount with interest for the term of the loan or one year. In the case of a client or spouse death, the loan amount outstanding is written off and the principal paid is returned to the client's nominee. SKS also has plans of introduce health insurance products for its members in the coming days.  

Sourced From: Sampark Public Relations Pvt Ltd