The objective of income-generating loans is to enable SKS members to generate income, build assets, and become self-reliant. If members divert the loans for consumption purposes, they are faced with the additional burden of repaying the loan with interest without creating any profits or assets. In order to ensure that members do not fall into this "debt trap," the group and sangam leaders, along with the sangam manager, conduct evaluations of loan utilization within one week from the date of disbursement.

If the funds are not being utilized for income-generating purposes, the member has the following two options:

• she can return the full amount of the loan at the next sangam meeting, stating the reasons for not utilizing the funds, or
• she can retain the funds for an additional week, at the discretion of the sangam manager, if she feels that an income-generating activity can be undertaken

If the funds are not properly utilized by the end of the second week and are not returned at the beginning of the next sangam meeting, the member is liable for the first installment, including interest, payable immediately.