a group is formed, members participate in a one-week Compulsory
Group Training (CGT) during which they are introduced to SKS'
loan products and procedures. In addition, members receive
numeracy and signature skills training, learn the importance
of savings and collective responsibility, elect group leaders,
and recite a pledge or padam which serves as an verbal
contract between SKS and its members. This padam is
repeated at the commencement and conclusion of each sangam
meeting to serve as a reinforcement of the commitment that
members have made to carry out their fiscal responsibilities
to SKS and to each other.
The CGT consists of seven daily hour-long sessions, typically
held in the evening, and is designed to inculcate strict credit
discipline among the groups. Strict credit discipline does
not exist naturally; rather it must be nurtured and maintained
to ensure the following:
and staff clearly understand their responsibilities and
execute them accordingly.
and staff regularly and punctually attend weekly sangam
(center) meetings and other sangam activities.
meetings are conducted in an orderly and professional manner
with group and sangam leaders carrying out their
disbursements are carefully determined according to loan
activities and ability to repay.
are disbursed in an accurate and timely manner.
are used for approved activities only, as verified through
periodic loan utilization reviews conducted by sangam leaders
and SKS staff.
of loans, both the principal and interest, is on time and
income is used for the improvement of the standard of living
for the member's family as a whole.
day seven of the CGT, members must pass a Group Recognition
Test (GRT) to be formally accepted into SKS' loan program.
The GRT tests members' skills in the areas of Group Structure,
Group Fund, Loan Proposal, Loan Disbursement, Loan Repayment
and Sangam Procedures.