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Income
Generating Loans
SKS
provides loans for income generating activities in an attempt
to break the vicious cycle of "low income, low savings,
low investment," into an expanding system of "low
income, investment credit, more income, increased credit, more
income." These loans carry a fifteen percent flat
interest rate along with one percent upfront fee and must be
repaid in 50 weekly installments. SKS' guiding principle is to
provide opportunity, not charity. Our approach is to enable
the poor to lift themselves out of poverty by providing an
unlimited stream of credit rather than one-time charitable
grants that are short-term solutions to long-term economic
problems.
Mid
Term Loans
Mid
Term loan is available to members after 25 weeks of repayment
of IG loan. Maximum limit of this loan is the difference of
the eligible IG loan limit for the current cycle and the
availed IG loan amount. The terms and conditions of this loan
are otherwise same as IG loan.
Note: At
any given point of time the availed IG loan and Mid Term loan
amount should not exceed the maximum IG loan limit of the
member for that cycle.
Features
MTL
loan amount would be the Difference between IG loan availed
and maximum amount available in current IG loan cycle.
The term of loan is 50 weeks with Weekly payment
mode
and 15% of Flat rate interest. MTL will be given only when IG
Loan crosses 25 weeks.
Group
Fund Loans
Any
member can take an interest free loan from fund created from
the compulsory savings for short terms consumption needs. The
group members independently determine the repayment schedule
without the involvement of SKS staff. Group fund savings and
loans eliminate the need for the poor to depend on the
landlord for their day to day needs.
Emergency
Loans
SKS
members are eligible to take up to Rs. 1500 ($35) in a fiscal
year for emergencies. These loans are provided interest free
and must be repaid within 20 weeks. Emergency loans are given
only in times of dire need to meet expenses such as funerals,
hospital admissions, prenatal care and other crisis
situations.
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