SKS Microfinance announces foray into TN
Chennai | Friday, Nov 20 2009 IST
 

NBFC major SKS Microfinance limited today announced its foray into Tamil Nadu to offer collateral free loans to help women start income generating activities.

SKS, which had successfully replicated the Bangaldesh's Grameen Bank model in India, has already enrolled 800 women members in its four branches in the State.

''Our plan is to have 25 branches in Tamil Nadu by the end of current fiscal, Company CFO S Dilli Raj told reporters here.

He said there were nearly 1.5 crore people living below the poverty line with a credit demand of Rs 7,502 crore.

''In line with our vision to provide collateral-free loans at the doorstep of poor, we have started operations in Vellore and Krishnagiri districts, before expanding to other parts of the State,'' he added.

With operations spread over 19 states, reaching out to 54 lakh poor households across 62,000 villages and disbursing collateral-free micro loans to the tune of Rs 10,538 crore for income generation through its 1700 branches, Mr Raj concurred that the company's foray into Tamil Nadu was quite belated. ''But we are entering Tamil Nadu as a leader and bringing in a lot of efficiency,'' he said.

He said the microfinance system involves forming groups of women (five per group) who serve as guarantors for each other and provide loans without any collateral security.

SKS would be offering Rs 16,000 as loan for income generation in the first year which would be repaid in 50 weeks. The loans would have an insurance cover for the duration of the loan.

-- (UNI) -- 20MC4.xml

 

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