Business Daily from THE HINDU group of publications
Saturday, Feb 02, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Feb 02, 2008 ePaper | Mobile/PDA Version |
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Money & Banking
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Financial Institutions SKS Microfinance plans to widen customer base by next fiscal Our Bureau Mumbai, Feb. 1 SKS Microfinance is planning to widen it customer base from 18 lakh to 40 lakh by next fiscal and to provide health and life insurance to its members in rural and semi-urban areas. The Micro-Finance Institution (MFI) also has plans to increase its branch network from 700 to 1,500. “In terms of disbursal, the company has lent Rs 1,730 crore, so far, this fiscal. By next year, we plan to increase our disbursal to Rs 5,000 crore,” said Mr M.R. Rao, Chief Operating Officer, SKS Microfinance. The MFI charges an interest rate of 24-28 per cent per annum. It is working on building scale and increasing volumes to drive down costs. Technology is one option to achieve this, said Mr Rao. The MFI is currently working on a mobile banking pilot. “Around 15-20 per cent of our customers own mobile handsets. Money could then be transferred from a mobile to a cash delivery point,” he said. SKS is now looking at marketing health insurance products to its members in Andhra Pradesh, Karnataka and Orissa. The health insurance product is called “Swayam Shakti”, which will be offered by ICICI Lombard General Insurance. This is a tailor-made health insurance product, which covers the member, spouse and two children against pre-existing illnesses, maternity, hospitalisation and personal accident. “We hope to insure 50 lakh lives by 2010. Many of our members have used their savings or have disposed assets – in some cases even income-generating assets or have borrowed money at exorbitant rates to meet their medical emergencies,” Mr Rao said. SKS also offers group life insurance, which is offered by the Life Insurance Corporation of India. More Stories on : Financial Institutions | Credit Market | Rural Development
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