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Product |
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Purpose |
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Terms |
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Interest Rate |
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AARAMBH
Income Generation Loan (IGL) |
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Income
Generation, asset development |
|
Interest Bearing: yes
Fee: yes
Term: 50 weeks
Repaid: weekly |
|
12.5%
(flat)
24% (effective) |
|
|
VRIDDHI
Mid-Term Loan (MTL) |
|
Same as
above, Available at middle (week 25) of IGL |
|
Interest Bearing: yes
Fee: yes
Term: 50 weeks
Repaid: weekly |
|
12.5%
(flat)
24% (effective) |
|
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RAKSHA
Emergency Loan (EL) |
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All
emergencies including maternal health, funerals,
hospitalization |
|
Interest-free
Fee: none
Term: 20 weeks
Repaid: bullet |
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0% |
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SANJEEVINI
Individual Loan (ILP) |
|
Income
Generation, asset development |
|
Interest
Bearing: yes
Fee: yes
Term: 1 � 2 years
Repaid: monthly |
|
11%
(flat)
23% (effective) |
|
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AARAMBH
Income Generating Loans (IGL)
The Income Generating Loan is available to all recognized SKS
clients. Clients use Income Generating Loans for a variety of
activities that generate income for their families. Clients
submit a loan application and based on approval receive the
loan after one week. Loans are paid in 50 equal, weekly
installments. After completion of a loan cycle, the client can
submit a loan application for a future loan. SKS' guiding
principle is to provide opportunity, not charity. Our approach
is to enable the poor to lift themselves out of poverty by
providing an unlimited stream of credit rather than one-time
charitable grants that are short-term solutions to long-term
economic problems.
VRIDDHI
Mid Term Loan (MTL)
The Mid Term Loan is available to clients after 25 weeks of
repaying their IGL loan. A client is eligible for a MTL if
they have not taken the maximum amount of the IGL. The
residual amount can be taken as a MTL. The terms and
conditions of the MTL are otherwise exactly the same as IGL.
RAKSHA
Emergency Loan (EL)
One Emergency Loan is available to all clients over the course
of a fiscal year. The loan is interest free and the amount and
repayment terms are agreed upon by SKS and the client on a
case by case basis. The amount is small compared to the income
generating products and is only given in times of dire need to
meet expenses such as funerals, hospital admissions, prenatal
care and other crisis situations.
SANJEEVINI
Individual Loan (ILP)
The Individual Loan is designed for SKS clients and non
clients that have specific needs beyond the group lending
model. Loans are given to an individual outside of the group
lending process. Amounts are typically higher than that of the
income generating loan and repayments are less frequent.
Applicants must complete a strict business appraisal process
and have both collateral and a guarantor. |
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