Product

 

Purpose

 

Terms

 

Interest Rate

             

 

           
 

AARAMBH
Income Generation Loan (IGL)

Income Generation, asset development  
Interest Bearing: yes
Fee: yes
Term: 50 weeks
Repaid: weekly
  12.5% (flat)
24% (effective)

VRIDDHI
Mid-Term Loan (MTL)

Same as above, Available at middle (week 25) of IGL  
Interest Bearing: yes
Fee: yes
Term: 50 weeks
Repaid: weekly
  12.5% (flat)
24% (effective)

RAKSHA
Emergency Loan (EL)

All emergencies including maternal health, funerals, hospitalization   Interest-free
Fee: none
Term: 20 weeks
Repaid: bullet
  0%

SANJEEVINI
Individual Loan (ILP)

Income Generation, asset development   Interest Bearing: yes
Fee: yes
Term: 1 2 years
Repaid: monthly
  11% (flat)
23% (effective)

 
AARAMBH
Income Generating Loans (IGL)

The Income Generating Loan is available to all recognized SKS clients. Clients use Income Generating Loans for a variety of activities that generate income for their families. Clients submit a loan application and based on approval receive the loan after one week. Loans are paid in 50 equal, weekly installments. After completion of a loan cycle, the client can submit a loan application for a future loan. 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.

VRIDDHI
Mid Term Loan (MTL)

The Mid Term Loan is available to clients after 25 weeks of repaying their IGL loan. A client is eligible for a MTL if they have not taken the maximum amount of the IGL. The residual amount can be taken as a MTL. The terms and conditions of the MTL are otherwise exactly the same as IGL.

RAKSHA
Emergency Loan (EL)

One Emergency Loan is available to all clients over the course of a fiscal year. The loan is interest free and the amount and repayment terms are agreed upon by SKS and the client on a case by case basis. The amount is small compared to the income generating products and is only given in times of dire need to meet expenses such as funerals, hospital admissions, prenatal care and other crisis situations.

SANJEEVINI
Individual Loan (ILP)

The Individual Loan is designed for SKS clients and non clients that have specific needs beyond the group lending model. Loans are given to an individual outside of the group lending process. Amounts are typically higher than that of the income generating loan and repayments are less frequent. Applicants must complete a strict business appraisal process and have both collateral and a guarantor.