[SKS Microfinance - Integrated Case Study]

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EXECUTIVE SUMMARY

The case study shows the huge potential of SKS and microfinance services in India. Indian state of Andhra Pradesh has experienced a staggering 200 suicides of farmers in late 2010, and that the probe is SKS Microfinance which gave them the loans may be implicated in the suicide, said the new report from Associated Press (AP). AP said that internal documents and interviews with current and former staff and testimony from the families of those killed him "to show the highest officials of SCS were the information about the involvement of employees in some suicides. Micro-finance signifies banking with the poor and is categorized by low cost of loans and a high degree of repayment. The thrust of the microfinance initiative is to organize the poor people into small and cohesive self-help groups and channelize production and consumption credit in multiple doses through the group members. Reports indicate that SKS verbally harassed and publicly humiliated borrowers them, in some cases even physical violence defaulters. Harrowing reports suggest that the agents told the debtors SKS prostitute their daughters told them to drink poison or prevent them from access to care, until the debts were paid. 18-year-old girl drank pesticide after she was forced to give money intended for the examination fee, leaving a note: "to work and earn money. More about Global Post: U.S. consumer finance Protection Bureau wants to control debt collectors and credit bureaus Muhammad Yunus, Nobel Prize winning economist introduced microcredit to help the poor in his native Bangladesh; he turned to SCS controversy in a conversation with The New York Times: “The key is that all this was caused by SCS. They were the ones who sort of crossed the line in a big way. Aggressiveness that she brought into the picture created all the problems. And then he [Vikram Akula, founder and former chairman of the SKS] made personal money from it; it annoys people. You say that you are helping poor people, but I see you do this personal money. “In late 2011, the BBC estimated that about 200,000 farmers committed suicide in India since 2007. The following is a report of NDTV in 2010, referring to the underestimation of the number of deaths of farmers in the state government of Andhra Pradesh. SKS provides loans ranging from $ 22 to $ 260 for people wishing to start and grow small businesses. Livestock (cows, goats), agriculture, trade, production (basketry, pottery) are the sectors that benefit from these loans. This organization appears microcredit repayment rates close to 99%. This result is possible thanks to financial literacy training and weekly meetings with borrowers.  With investors now particularly concerned regarding the circulation of the money or the safety of their money in the hands of another intermediary, it becomes even more important and necessary for the business to now survive in the world today. Therefore, microfinance added as a helping hand for all those small- and medium-sized businesses, which require capital and funds in order to continue processing their efforts and ...