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SKS microfinance reaches 50 lakh women, targets 500 lakh now
Hyderabad-based SKS Microfinance, India's largest microfinance company, has crossed five million clients, a milestone in its lending history.

The company's Darbhanga branch in Bihar on Tuesday extended a loan worth Rs 10,000 to Ms Anita Devi. It has provided loans to 13,218 more clients since then. With this, SKS has reached 2.5 per cent of the country's population and distributed collateral-free loans worth Rs. 9,110 crore for income generation.

"It's the hard work and discipline of our members who repay us back on time that has helped us grow along with the confidence our investors have in us and the processes and systems that our staff follow diligently," company COO M R Rao said in a press release.

SKS provides unsecured loans and micro-insurance products to poor women and their families across 62,000 villages and urban slums of India. It has a repayment rate of 99 per cent on its loans.

On an average, SKS adds 50 new branches and 3,00,000 new members every month, growing at an annual rate of 188 per cent, one of the fastest in the industry. The average borrowing per member is around Rs. 9,000 under the main basic income generating loan poduct.

SKS Microfinance currently has a membership base of 5,013,219 and aims to reach 500 lakhs in near future. With an outstanding loan amount of Rs. 2,815 crore, it operates through 1,628 branches in 19 Indian states. The company also offers a retail micro-insurance product along with Bajaj Allianz for its members.

SKS has so far raised $123.5 million in equity alone from Sequoia Capital and Sandstone Capital, among others. It recently became the first MFI to raise Rs 75 crore via non-convertible debentures (NCD) and list the same in Bombay Stock Exchange.

Previously it had raised Rs 25 crore via NCDs which was subscribed by Yes Bank. It had also completed a securitisation deal worth Rs 100 crore. It received a strategic investment of Rs 50 crore from insurance firm Bajaj Allianz Life Insurance in June this year.
Source :
Microfinance Focus
 
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