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SKS Microfin begins operations in Kerala
Our Bureau
Kochi, Dec. 18 SKS Microfinance, a registered NBFC, has launched its operations in Kerala to provide income generating loans and other financial services in a sustainable manner.
The company commenced its operations in Ernakulam and Thrissur districts and plans to open more branches in the areas of Palakkad, Alappuzha, Kollam, Malappuram and Kottayam districts soon.
The State has approximately 20 lakh poor households with a need for Rs 4,200 crore, Mr M.R.Rao, Chief Operating Officer said at a press meet. Kerala is part of the company’s growth map and it plans to reach out to 7,000 poor households this fiscal with income generating loans, he added.
Initially, SKS gives loans up to Rs 12,000 to members without any collateral. The operations are modelled along the lines of the Grameen Bank of Bangladesh. The repayments are collected over 50 weeks in weekly instalments.
A further mid-term loan of up to Rs 4,000 can be availed by the members after 25 weeks. The maximum loan given out is worth Rs 20,000 and an effective interest rate of 24 per cent is applicable.
SKS also offers a loan insurance cover for all its members and their spouses. The loan cover fee is one per cent of the loan amount and the policy covers the entire amount.
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