has selected a village and conducted informational sessions with its
residents, interested women form self-selected five member groups to
serve as guarantors for each other. This process is called Group
Experience has shown that a five-member group is small
enough to effectively enforce group peer pressure and, if necessary,
large enough to cover repayments in case a member needs assistance.
Group members must be between the ages of 18 and 59, cannot be related
and must live close to one another.
Once a group is formed and meets the minimum requirements, it begins
Compulsory Group Training (CGT).
is a five day
program consisting of hour-long sessions designed to educate clients
on the processes and procedures of SKS and build a culture of credit
discipline. Using innovative, visual and participatory teaching
methods, SKS staff introduces clients to SKS’ financial products and
delivery methods. In addition, CGT teaches clients the importance of
collective responsibility, how to elect group leaders, the SKS pledge
and how to sign their name. During the training period, SKS staff also
collects quantitative data on each client to make sure they qualify
for the program and record base-line information for future analysis.
On the fifth day, clients take the Group Recognition Test
are officially accepted as a SKS’ client after successfully completing
As additional groups are formed within a single village, a Sangam
(Center) emerges. During Sangam Formation
, groups are
combined to form a center of 4 to 12 groups or 20 to 60 clients. The
Sangam is responsible for the repayment of all groups, creating a dual
joint liability system. If one group defaults the rest of the Sangam
Once a Sangam is formed,
begin the following week.