SKS Microfince launches its operations in Mangalore
Becomes the first internal audit team in an MFI to meet Quality Management standards in the world
• Extends collateral free loans worth Rs 80 crore in West Bengal
• Operating in 14 districts through 43 branches in West Bengal
• Plans to increase member base to ___ lakh in West Bengal
Managalore - March 18, 2008
SKS Microfinance, one of the fastest-growing Microfinance company in the world, has crossed 1 lac member milestone in Bihar and Jharkhand. The company, which aims to economically empower the poor by giving them collateral free loans in a sustainable manner, for income generating activities, started its operations in the region in July 2006. In Bihar, SKS has economically empowered 78000 women and 31000 women in Jharkhand. SKS has provided collateral free loans worth Rs 64 crore in Bihar and Rs 25 crore in Jharkhand.
“Over one crore households in Bihar live below poverty line and over 1.2 crore households live below poverty line in Jharkhand, requiring Rs 21000 crore for each state to alleviate poverty. SKS has reached out to over 1,09,130 women in Bihar and Jharkhand and we enjoy 99.9% recovery rate. We have disbursed loan worth Rs 9 crore loan in Bihar and Rs 3.6 crore in Jharkhand, in February,” elaborates Deepak Jha, Regional Manager, Bihar and Jharkhand.
In Bihar, SKS operates in Gaya, Patna, Munger, Banka, Araria, Bhojpur, Buxar, East Champaran, Kaimur, Katihar, Khagaria, Kishanganj, Lakhisarai, Nalanda, Navada, Patna, Purnia, Siwan, Vaishali, Begusarai, Rohtash, Saharsa, Saran, Sheikhpura.
In Jharkhand, SKS operates in Hazaribagh, East Singhbhum, Bokaro, Dumka, Ranchi, Deograh, Koderma, Girdih, Godda, Dhanbad. SKS plans to start its operations in Gumla and Paschim Singhbhum by March 2009
Borrowers use loans for starting micro-enterprises, ranging from livestock, trade, services and agriculture. In Bihar and Jharkhand the loans are primarily used for setting up trade. 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.