New Delhi, Jun 15: SKS Microfinance Pvt Ltd, the country's largest microfinance institution, has said it aims to add 2.3 million customers across the country in this fiscal with disbursement of about Rs 5,500 crore loan. ''We target to add 2.3 million customers in this fiscal, taking the total customer base to four million by the end of this fiscal.
With disbursement of about Rs 5,500 crore in this fiscal, the total loan amount extended to the customers will touch about Rs 8,800 crore,'' company Founder and CEO Vikram Akula told reporters here. The company has disbursed Rs 1,616 crore in the last fiscal to 1.3 million customers. The non-bank finance company operates through 944 branches as compared to 275 branches in the last fiscal.
Out of Rs 5,500 crore loan, about Rs 3,000 crore would be debt from various banks and about Rs 400 crore would be raised through equity, while the rest will be financed through internal accruals, Company Chief Operating Officer Mr Rao said.
SKS Microfinance has attracted leading social investors like Unitus, a Seattle-based NGO that helps promote microfinance; Small Industries Development Bank of India, technology entrepreneur Vinod Khosla and Sequoia, Columbia Ventures Corporation, Silicon Valley Bank and Yatish Trading.
The company raises fund through leading banks including Small Industries Development Bank of India, Corporation Bank, Axis Bank, Bank of India, Yes Bank, Indian Bank, South Indian Bank, Indian Overseas Bank, HDFC, Citi Bank, HSBC, IndusInd Bank, Karur Vysya Bank and Industrial Development Bank.
It provides unsecured loans and micro-insurance products to poor women and their families spread across 30,000 villages and slums of the country while maintaining a 99 per cent repayment rate.
SKS adds over 120 new branches and 160,000 new customers every month, growing at an annual rate of 200 per cent, one of the fastest in the industry, Mr Akula said.
On average, an SKS member borrows Rs 8,300 under the basic income generating loan product.
There is also a higher denomination Individual Loan Product which is extended to members who have completed at least one loan cycle with the company. This averages Rs 30,000.
Loan cover risk insurance under LIC, a health insurance cover for the member and family through a tie-up with ICICI Lombard and a retail insurance product launched jointly with Bajaj Allianz are the basic products offered to SKS members.
The company has recently got the distinction of being the first microfinance company in the world whose internal audit team of 225 employees has received an ISO certification.
It also conducts monthly audits across its branches. Its external auditors are S R Batliboi and Co.