SKS microfinance

NBFC
Vikram Akula, CEO
1) Follows for-profit model unlike other MFIs which follow not-for-profit model.
2) Shares were given to emplyees at 10-70 Rs per share...These shares are now be
ing traded at 1200 rs.
3) Theme:- Lends to women from low income households supposing that they handle
cash better and are positive for repaymnet of loans.
This also makes women an enhanced decision making stature and gives t
hem higher social standing.
Also banks on social peer group pressure to ensure timely loan repaym
ent.
Decision to give loans is taken on basis if field level managers see
the growth of village is feasible or not.
Then group meetings are held to explain loan system and repayment tec
hniques.
83% of loans given for income generating businesses for weaker sectio
ns of society like running kirana stores,setting up tailoring facilities,li
vestock rearing,pottery,basket weaving etc.
Discipline is inculcated within people, One member disbars other of g
roup from availing of loans in future.
The group acts a co-guarantor virtually with meetings held in morning
s.
4) Similar model is followed in Bangladesh for last 30 yrs.
5) It also distributes insurance products and provides interest free loans for p
eriod of 25 weeks to inculcate habits of savings among villagers.