Vol. II: Shaping Information and Communication ... - IMA,ZLW & IfU

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$5,000 [approx. Rs. 250,000] per year per branch, which translates into $250,000 [Rs.
125,00,000] per year for an institution with 50 branches, or $5 million [Rs. 250 million] per
year for an institution with 1000 branches.
SKS had to customize its MIS system [which took nearly 4 months] to ensure its functioning
with maximum accuracy and to accommodate the new Smart Card technology. Accounts had
to be reviewed daily as they are directly transferred to the main computer/database literally
hours after group meetings, thereby eliminating fraud and error. Strong financial controls
were essential to foster trust from customers as well as from investors.
Impact
Since its inception in 1998, the total disbursement of the MFI has been $116,000 [Rs.
55,68,000] and the repayment rate has been consistently 100 percent on income generating
loans [a fifty week term and twenty percent flat rate of interest], seasonal loans [a twenty-five
week term with twenty percent flat rate of interest], and emergency loans [interest-free, with a
four to twenty week term].
SKS foresees upcoming opportunities for the product. For instance, customers who need
emergency loans, for hospitalisation etc., have access to cash advances 24 hours at a branch
ATM rather than wait for weekly meetings.
A customer who consistently makes timely repayments may be rewarded special privileges
with a “gold” card. Additional services may include credit linkages with local merchants, preapproved
lines of credit, and ATMs in market towns.
Groups with excellent repayment histories may be able to skip group meetings altogether and
carry out all their business with an ATM. SKS expects that it will discover even more uses for
the Smart Card in the future.
To realize the vision of creating a self-sustaining MIS division, and scale up its own
operations to 25,000 clients in 100 districts, it is estimated that SKS would need US$ 1
million to be invested over the next three years.
Contact Information
URL: www.sksindia.com