board member area

How does SKS Work?

Village Survey

Projection Meetings


Group Formation

Sangam Formation

Loan Disbursement

Loan Utilization

Once a group is formed, there is a one-week training period called Continuous Group Training (CGT). CGT consists of 7 daily hour-long sessions (typically conducted in the evening), during which members learn the goals and procedures of the loan program. One of the days is marked for a detailed quantitative evaluation (means test) of group members so that there is base-line data for each member.

The CGT is the first formal interaction between staff and groups, and it is the place where strict credit discipline is inculcated. Strict credit discipline is essential for credit programs to be sustainable.


Strict credit discipline involves

  • Members and staff having a clear idea of their responsibilities and carrying them out accordingly.

  • Members regularly and punctually attending weekly Center meetings and participating in other Sangam activities. Any absence has to have prior approval from the Sangam leader. Staff also attends punctually.

  • Sangam meetings are conducted in a prescribed and business-like manner, with members sitting in their respective places and group leaders and Sangam leaders carrying out their duties.

  • Loan amounts are carefully determined according to loan activities and ability to repay.

  • Loan disbursement is timely and honest.

  • Loans are used for approved activities, as shown by careful loan utilization checks by both Sangam officials and staff.

  • Repayment of principal and interest is in full and on time.

  • Surplus income is used for the improvement of the level of living of the family as a whole.

Achievement of all these elements of strict credit discipline is not easy. Strict credit discipline does not exist naturally; it must be created and maintained. Borrowers, at least initially, don’t like to be disciplined so strictly. They will continually “test the limits” of indiscipline. Creating strict discipline begins with targeting the poorest during group formation and with CGT. 

The role of CGT

The role of Continuous Group Training is to create a culture of credit discipline and to ensure that all Members have a minimum understanding of the credit program.  Firstly, the objective and all the rules and regulations of the credit program needs to be explained and understood.  Secondly, all the rights and obligations of Members need to be understood and accepted.  This leads to a clear understanding of the transparency (including the need there of) and accountability (inter and intra group).  These require formal, short training sessions over a minimum of 7 continuous days.

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