board member area

How does SKS Work?

Village Survey

Projection Meetings


Group Formation

Sangam Formation

Loan Disbursement

Loan Utilization


Income generating loans are drawn from SKS' corpus funds and must first be approved by the group since members of the group collectively serve as guarantors for individual loans. Once the group has agreed to a loan proposal, it is presented to the village Sangam, which serves as a guarantor for a defaulting group. SKS' staff have final discretion as to whether a loan application will be approved.

Loan disbursements within each group are staggered in a 2/2/1 schedule: two members are eligible within three weeks of group formation, an additional two members are eligible three weeks later, and the final member three weeks later still. Each subsequent loan within a group is contingent upon timely repayment of prior loans by individual members. This system not only instills credit discipline within a group but also fosters collective responsibility among group members.

In the first year, individual members may secure a maximum of Rs. 10,000 ($204) in income-generating loans. Loan eligibility increases by an additional Rs. 3,000 ($61) each subsequent year -- Rs. 13,000 ($265) in the second year, Rs. 16,000 ($327) in the third year, etc. - provided neither the member nor the group has defaulted on any loan. Unlimited credit is available to SKS members who demonstrate a perfect repayment and credit history.

Members must repay their loans at a Fifteen percent flat interest rate in 50 equal, weekly installments. These installments are collected at weekly Sangam meetings where attendance is mandatory. In the event that a member is unable to make her weekly installment, the group must make the repayment on her behalf.

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