For more than ten years, SKS microfinance has provided opportunities for poor families to gradually lift themselves out of poverty. Microfinance serves as an important foundation for broader development, which includes improvements in health, education and political participation.
Microcredit or Microfinance is the process of granting small loans to poor people, primarily to women, who have no collateral and are marginalised. These women tend to use their income to benefit their households and children. The process is accomplished through a microfinance institution that:
Examples of enterprises established include, buying a buffalo to sell its milk; starting a kirana store; manufacturing sweets; selling soft drinks; grinding spices; sewing; candle making; collecting fallen hair for wigs and extensions; repairing watches; tea or petty shops; vegetable stands; bicycle repair; carpentry and welding shop or an auto rickshaw.
In groups of five to ten, the women support each other emotionally and financially by guaranteeing the repayment of each of their loans. With as little as INR 4,000 (USD 85), a borrower can start a kirana store. With INR 10,000 (USD 212), a borrower can purchase a milking cow / buffalo, sewing machine, or set up an embroidery unit. Many of the women become leaders in their communities and undertake projects that benefit all the residents.
The repayment of loans plus interest generates funds that can be reinvested as a second and third loan or used to start other women on their journey toward sustainable prosperity. The entire community benefits from improvement projects taken on by these newly confident and capable leaders.
Microfinance institutions broadly operate under a wide range of legal structures. They could be registered as NGO, Trusts, Sec 25 Companies, Cooperative Societies, Cooperative Banks, Regional Rural Banks, Local Area Banks, Public and Private Sector banks, Business Correspondents and Non-Banking Finance Companies.
SKS Microfinance is registered with the RBI as a non-deposit taking NBFC and is regulated by the RBI.Microfinance is an effective tool that can help reduce poverty and spread economic opportunity by giving poor people access to financial services, such as credit and insurance. SKS distributes small loans that begin at Rs. 2,000 to Rs. 12,000 (about $44-$260) to poor women so they can start and expand simple businesses and increase their incomes. Their micro-enterprises range from raising cows and goats in order to sell their milk, to opening a village tea stall. SKS uses the group lending model where poor women guarantee each other's loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. Weekly meetings with borrowers follow a highly disciplined approach. Re-payment rates on our collateral-free loans are more than 99% because of this systematic process. SKS also offers micro-insurance to the poor as well as financing for other goods and services that can help them combat poverty.....BUY FOR A LONGER TERM AT CMP 157 OR BELOW
Microcredit or Microfinance is the process of granting small loans to poor people, primarily to women, who have no collateral and are marginalised. These women tend to use their income to benefit their households and children. The process is accomplished through a microfinance institution that:
- recruits and trains responsible, appropriate borrowers, each of whom establishes her small business
- helps them form groups that are accountable for each other's loans
- distributes funds for loans
- meets with groups of borrowers to collect loan repayments and to guide their endeavours
Examples of enterprises established include, buying a buffalo to sell its milk; starting a kirana store; manufacturing sweets; selling soft drinks; grinding spices; sewing; candle making; collecting fallen hair for wigs and extensions; repairing watches; tea or petty shops; vegetable stands; bicycle repair; carpentry and welding shop or an auto rickshaw.
In groups of five to ten, the women support each other emotionally and financially by guaranteeing the repayment of each of their loans. With as little as INR 4,000 (USD 85), a borrower can start a kirana store. With INR 10,000 (USD 212), a borrower can purchase a milking cow / buffalo, sewing machine, or set up an embroidery unit. Many of the women become leaders in their communities and undertake projects that benefit all the residents.
The repayment of loans plus interest generates funds that can be reinvested as a second and third loan or used to start other women on their journey toward sustainable prosperity. The entire community benefits from improvement projects taken on by these newly confident and capable leaders.
Microfinance institutions broadly operate under a wide range of legal structures. They could be registered as NGO, Trusts, Sec 25 Companies, Cooperative Societies, Cooperative Banks, Regional Rural Banks, Local Area Banks, Public and Private Sector banks, Business Correspondents and Non-Banking Finance Companies.
SKS Microfinance is registered with the RBI as a non-deposit taking NBFC and is regulated by the RBI.Microfinance is an effective tool that can help reduce poverty and spread economic opportunity by giving poor people access to financial services, such as credit and insurance. SKS distributes small loans that begin at Rs. 2,000 to Rs. 12,000 (about $44-$260) to poor women so they can start and expand simple businesses and increase their incomes. Their micro-enterprises range from raising cows and goats in order to sell their milk, to opening a village tea stall. SKS uses the group lending model where poor women guarantee each other's loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. Weekly meetings with borrowers follow a highly disciplined approach. Re-payment rates on our collateral-free loans are more than 99% because of this systematic process. SKS also offers micro-insurance to the poor as well as financing for other goods and services that can help them combat poverty.....BUY FOR A LONGER TERM AT CMP 157 OR BELOW
