SKS Microfinance Private Limited, which has 85 branches in Andhra Pradesh, Karnataka, Maharashtra, Orissa and Madhya Pradesh, will be launching its operations in five more states this year in pursuit of its goal to reach seven lakh clients by 2007. | |
| SKS chief executive officer Vikram Akula said that the organisation would also be reducing the effective rate of interest from the existing 24 per cent to 18 per cent in 12 months and to 15 per cent in a span of three years. SKS was planning to reduce its borrowing costs through secuterisation so as to decrease the interest rates on its loans. |
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| Akula told mediapersons here on Monday that SKS was unable to lend for less than 24 per cent interest at present as it was borrowing funds at an interest rate of 10.7 per cent. This apart, the operating costs stood at 9.8 per cent. |
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| Launched in 1998, SKS has been one of the fastest growing microfinance organisations with disbursement of loans worth Rs 240 crore to 2.21 lakh women in backward regions of the country. |
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| Last year, the organisation achieved a growth rate of 300 per cent. Incidentally, Akula has been named by TIME magazine as one of "The People Who Shape Our World" for 2005. |
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