SKS Microfinance crosses 1 lac member milestone in MP
• Extends collateral free loans worth Rs 105 crore
• 52 branches operate in 18 districts
• Plans to increase client base to 3 lac by March 2009
• To expand to 4 districts by March 2009
Bhopal - March 20, 2008
SKS Microfinance, one of the fastest growing Microfinance institutions in the world, has crossed the 1 lac milestone in Madhya Pradesh. The company, which aims to empower the poor to become economically self-sufficient by providing financial services in a sustainable manner, started operations in the region in November 2005. SKS Microfinance presently has 52 branches operating across 18 districts in Madhya Pradesh. It plans to reach out to 3 lac poor women by March 2009 and start operations in Ratlam, Vidisha, Rajgarh and West Nimar.
“There are 57 lac households living below the poverty line in Madhya Pradesh requiring Rs 119,000 crore as loans. We have provided loans worth Rs 105 crore with 99.8% recovery rate in Madhya Pradesh. We hope to reach out to many more poor families in the coming year,” said Rashmi Singh, Regional Manager, Madhya Pradesh.
SKS currently operates in Jabalpur, Dewas, Ujjain, Narsinghpur, Hoshangabad, Indore, Katni, Raisen, Sagar, Satna, Sehore, Seoni, Shahjapur, Bhopal, Dhar, East Nimar, Shahdol, Umaria.
Borrowers use loans largely for livestock and services followed by production, services, trade and agriculture. Returns on borrower enterprises average 100%, enabling them to earn income, build assets, and get out of poverty. SKS uses a lending model that was developed by Nobel Prize winner, Muhummad Yunus of the Grameen Bank in Bangladesh. The system involves forming groups of women who serve as guarantors for each other, thus enabling SKS to provide loans without taking any collateral from borrowers.