SKS microfinance

What SKS microfinance does

SKS Microfinance Limited is an Indian non-banking financial company-microfinance institution (NBFC-MFI) registered with the Reserve Bank of India, headquartered in Mumbai with primary operations in Hyderabad. Founded in 1997 as an NGO in Andhra Pradesh, the company converted to a for-profit NBFC in January 2005 and was reclassified as an NBFC-MFI in November 2013. It provides collateral-free microcredit and adjacent financial services to poor women across rural, semi-urban, and urban India, reaching 6+ million members through 1,268 branches across 17 states as of June 2015. The company targets women earning less than USD 2 per day, offering credit at a 19.75% annual effective interest rate compared to informal moneylender rates of 40-70%+.

SKS operates a Joint Liability Group (JLG) lending model where self-selected five-member women groups act as mutual guarantors. The product suite includes the Aarambh Income Generation Loan (Rs. 9,100-50,000+, 50-week weekly cycle), Vriddhi Mid-Term Loans for working capital, Long Term Loans for established borrowers (Rs. 30,915-49,785 over two years), Consumer Product Loans for productivity assets (mobile phones, solar lamps, water purifiers), and the Swarnapushpam gold-secured loan product. The company also distributes Bajaj Allianz life insurance and operates 16 SKS Bodhi Academies providing low-cost primary education. The technology backbone consists of a proprietary web-based Business Intelligence portal, an in-house microfinance platform, and an MPLS-based communication network, built in partnership with Microsoft, Wipro, HCL, Reliance, and Sify.

The business model is interest income-driven from micro-loans with FY15 revenue of INR 803 crores (approximately USD 120 million) and net profit of INR 188 crores, implying a 163% five-year revenue CAGR and 134% five-year profit CAGR. Distribution is field-based: loan officers conduct weekly doorstep collections through sangam center meetings that double as sales and repayment platforms. SKS has raised over INR 800 crores through capital markets including a 2010 IPO oversubscribed 13.6 times and subsequent QIP issues in 2012 and 2014, and maintains 45+ banking relationships. In January 2015 the board approved an application for a Small Finance Bank licence, signalling intent to evolve from a pure-play microfinance NBFC into a diversified banking entity.

Name

SKS microfinance

Legal name

SKS Microfinance Limited

Website

https://sksindia.com

Company type

Public

Founded year

1997

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

SKS Microfinance is an Indian NBFC-MFI providing collateral-free microcredit, insurance, and consumer-asset financing to 6+ million poor women across 17 states via a Joint Liability Group lending model, with weekly doorstep collection through 1,268 branches.

Ownership category

akta.pro rank

Product category

Microfinance

NAICS

Consumer Lending (522291), Nondepository Credit Intermediation (5222)

SIC

Personal Credit Institutions (6141), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Microloans & Working Capital Loans (FSAKAGAA)

akta.pro secondary industry

Agricultural & Rural Microfinance (FSAKAGAG)

Keywords

• Microfinance services
• Microcredit lending
• Micro-insurance products
• Gold loan services
• Consumer goods financing

Headquarters

HQ city

Hyderabad

HQ country

India

HQ region

Asia

Offices23 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Micro-loan Interest Income: Primary revenue from interest charged on micro-loans to poor women. Interest rate is 19.75% annual effective interest rate. Loans range from Rs. 9,100 to Rs. 50,000+ depending on product type and credit history.
2. Gold Loan Interest Income: Interest income from gold loans (Swarnapushpam) secured by gold jewellery. Loans range from Rs. 2,000 to Rs. 100,000 with annual effective interest rates between 18.5% and 25%.
3. Life Insurance Distribution: Distribution and administration of micro-insurance products through partnership with Bajaj Allianz. Weekly payment of Rs. 20 for 5-year term life insurance.
4. Consumer Goods Financing: Financing for products like mobile phones, solar lamps, water purifiers, bicycles, and sewing machines through partnerships with companies like Nokia and Airtel.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels4 records

Core offering

SKS Microfinance is an RBI-registered NBFC-MFI providing collateral-free micro-credit to poor women in India under a Joint Liability Group lending model. Core offerings are weekly-repayment loans (Income Generation Loan/Aarambh, Mid-Term Loan/Vriddhi, Long Term Loan) from Rs. 9,100 up to Rs. 50,000 at a 19.75% annual effective interest rate, supplemented by Swarnapushpam Gold Loans (Rs. 2,000 to Rs. 2,00,000 secured by jewellery) and consumer product loans financing mobile phones, solar lamps, water purifiers, bicycles and sewing machines. Micro-insurance is distributed under a partnership with Bajaj Allianz, and the company also operates the SKS Bodhi Academies, low-cost English-medium schools for rural children.

Product overview

SKS Microfinance offers a portfolio of financial products centred on a Joint Liability Group lending model for poor women in India. The core product suite includes the Income Generation Loan (IGL) – Aarambh as the primary microcredit offering, supplemented by Mid-Term Loans (MTL) – Vriddhi for working capital top-ups, and Long Term Loans (LTL) for established borrowers. Consumer Product Loans provide small ticket financing for household productivity assets. A gold jewellery-secured loan branded as Swarna Pushpam extends the portfolio into secured personal/business credit. Life Insurance, underwritten by Bajaj Allianz, adds protection to the offering. Beyond financial services, SKS operates SKS Bodhi Academies, a network of low-cost English-medium schools for members' children. The portfolio is distributed exclusively through women borrower groups meeting weekly at sangam (centre) meetings across rural, semi-urban, and urban India.

Differentiator

Problem solved

Functional benefit

Brands

• Aarambh: Income Generation Loans product - first loans range from Rs. 9,100 to Rs. 20,010
• Vriddhi
• Swarnapushpam Gold Loan
• Bodhi Academy
• Swarnapushpam

Products and services

• Income Generation Loan (IGL) - Aarambh Collateral-free, weekly-repayment micro-loan for self-employed women to fund income-generating micro-businesses such as livestock raising, kirana stores, and tailoring. First-cycle loans range from Rs. 9,100 to Rs. 20,010 with subsequent loans scaling up to Rs. 29,565 based on credit history.
• Mid-Term Loan (MTL) - Vriddhi Mid-term supplementary loan available to existing IGL borrowers from the 19th week of the cycle up to the 46th week (or 96th week for LTL cycles). Loan sizes range from Rs. 9,100 to Rs. 15,010 for the first loan and up to Rs. 15,010 for subsequent loans at a 19.75% annual effective interest rate. Designed for working-capital top-ups for ongoing micro-enterprises.
• Long Term Loan (LTL) Two-year (104-week) loan for established microentrepreneurs, with first-cycle loan sizes from Rs. 30,915 to Rs. 38,635 incrementing up to Rs. 49,785 for subsequent cycles. Weekly principal and interest payments at a 19.75% annual effective interest rate.
• Consumer Product Loans (Biomass Cook-stove, Solar Light, Water Purifier, Mobile Phone, Bicycle, Sewing Machine) Small loans of Rs. 1,799 to Rs. 5,290 over 25 weeks enabling members to purchase productivity-enhancing consumer products including biomass cook-stoves, solar lamps, water purifiers, mobile phones, bicycles, and sewing machines, delivered through partnerships with companies such as Nokia, Airtel, Vodafone and d.light solar.
• Swarnapushpam Gold Loan Gold-jewellery-secured personal or business loan offering amounts from Rs. 2,000 to Rs. 2,00,000 with flexible tenures up to 365 days and annual effective interest rates from 15% to 26% across SP3 (15-24%, 0-360 days) and SP4 (19.2-26%, 0-270 days) schemes, with maximum exposure of 68-75% loan-to-value and a 0.5% processing fee.
• Life Insurance (Bajaj Allianz partnership) Micro-insurance product administered in partnership with Bajaj Allianz, requiring weekly premium payments of Rs. 20 for a five-year term, paying a sum assured of Rs. 5,000 (Rs. 10,000 for accidental death) plus account value to beneficiaries.
• SKS Bodhi Academies Network of 16 low-cost English-medium schools operated by the SKS Educational Society across four districts of Andhra Pradesh (Medak, Nalgonda, Warangal, Khammam), offering pre-nursery to second standard education using a play-way interactive curriculum at INR 160-220 per month to children of rural villages.

Quantifiable outcome

• 99%+ on-time repayment rate maintained across portfolio
• +3 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

20 partnerships are on record, tiered core and minor.

• Women's World BankingcoreStrategic or Co-development PartnerEarly supporter of SKS when it started as a small NGO. Provided guidance and support for microfinance operations development.
• CGAPcoreStrategic or Co-development PartnerConsultative Group to Assist the Poor - international partnership working to advance microfinance. SKS received awards and recognition from CGAP for financial transparency.
• Grameen Foundation USAcoreStrategic or Co-development PartnerProvided early support and recognition including Microfinance Practitioner Award for Excellence in 2005.
• American India FoundationminorStrategic or Co-development PartnerEarly supporter of SKS microfinance operations.
• Bajaj Allianz Life InsurancecoreStrategic or Co-development PartnerPartnership to offer life insurance products to SKS borrowers. Weekly payment of Rs. 20 for 5-year term with sum assured of Rs. 5,000.
• MIX MarketcoreStrategic or Co-development PartnerGlobal web-based microfinance information platform. SKS ranked No. 1 MFI in India and No. 2 globally in their annual rankings.
• MicroFinance NetworkminorStrategic or Co-development PartnerInternational association of leading MFIs sharing ideas and innovative solutions.
• d.light solarminorStrategic or Co-development PartnerPartnership to make solar lamps available to SKS members. Loan product designed to facilitate finance for solar lamp purchases.
• Nokia India Pvt. Ltd.minorStrategic or Co-development PartnerPartnership to supply quality mobile handsets to SKS borrowers through mobile financing program.
• MicrosoftcoreTechnology or IntegrationStrategic technology partner for establishing agile and scalable technology architecture.
• WiprocoreTechnology or IntegrationStrategic technology partner for establishing agile and scalable technology architecture.
• ReliancecoreTechnology or IntegrationStrategic technology partner for establishing agile and scalable technology architecture.
• HCLcoreTechnology or IntegrationStrategic technology partner for establishing agile and scalable technology architecture.
• SifycoreTechnology or IntegrationStrategic technology partner for establishing agile and scalable technology architecture.
• HDFCminorStrategic or Co-development PartnerPilot housing loan partnership with technology and financial assistance from HDFC.
• Metro (German wholesaler)minorStrategic or Co-development PartnerPartnership to help finance quality inventory for small shops of SKS borrowers.
• AirtelminorGTM or Marketing PartnerPassbook advertising partner and mobile financing program partner.
• VodafoneminorGTM or Marketing PartnerPassbook advertising partner reaching rural customers through SKS network.
• ICICI LombardminorGTM or Marketing PartnerPassbook advertising partner for insurance and financial products.
• Sa-DhanminorStrategic or Co-development PartnerIndian association of microfinance institutions for community development finance.

Scale indicators23 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• Spandana Sphoorty Financial Limited: Major Indian NBFC-MFI founded 2003 serving poor women via JLG model. Directly comparable on product mix (microcredit, group lending), customer base (rural/semi-urban women), and regulatory regime (NBFC-MFI under RBI).
• Bandhan Bank: Largest Indian microfinance institution turned universal bank (General Banking License 2015). Directly comparable as both operated JLG lending to poor women in India at similar scale before Bandhan's bank conversion; same regulatory evolution path SKS is pursuing.
• Jana Small Finance Bank (formerly Janalakshmi): Indian microfinance institution serving urban poor women via JLG model, later converted to Small Finance Bank. Directly comparable by JLG methodology, urban/semi-urban focus, women-borrower segment, and SFB conversion path.
• Muthoot Microfinance Limited: Subsidiary of Muthoot Group providing JLG-based microcredit to women in rural India. Comparable on customer base (poor rural women), product offering (collateral-free group loans), and distribution model (door-to-door weekly collection).
• Equitas Small Finance Bank: Indian microfinance institution that converted to Small Finance Bank in 2016. Directly comparable as both target underserved borrowers via JLG model and pursue bank conversion for deposit access; Equitas received one of the first 10 SFB licenses.
• Ujjivan Small Finance Bank: Large Indian microfinance institution that converted to Small Finance Bank in 2017. Directly comparable as both target financially excluded poor women, used JLG model, and are pursuing SFB conversion to access low-cost deposits.
• Fusion Microfinance: Indian NBFC-MFI providing income-generation loans to poor women via JLG model across underserved districts. Directly comparable on target segment, JLG methodology, and product portfolio as one of growing mid-tier NBFC-MFIs.
• CreditAccess Grameen (formerly Grameen Koota): Major Indian NBFC-MFI serving 4M+ women borrowers across rural and semi-urban India with JLG methodology. Directly comparable by product, customer segment, JLG lending model, and target borrower profile.
• Asirvad Microfinance Limited: Indian NBFC-MFI subsidiary of Manappuram Finance serving low-income women via JLG lending. Directly comparable business model, customer segment, and product offering; similar regulatory and competitive environment.

Broad incumbents

• Grameen Bank (Bangladesh): Pioneer of group-lending microfinance globally and the original inspiration for the JLG model that SKS and other Indian MFIs employ. Broadly comparable as the global benchmark MFI from which Indian microfinance institutions, including SKS, conceptually derive their methodology.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/SksMicrofinanceLtd
• LinkedInlinkedin.com/company/dohme-global-group-airlines-greece

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about SKS microfinance