Microfinance making a difference

SKS Finance is a for profit micro-lending company in India that is making a difference in the lives of tens of thousands of people by extending credit to women in villages throughout India. With more than 70% of India's population living in rural villages, SKS Finance has identified a great need for people to build a business-credit. In the midst of the credit crunch in the US, we visited this village where 30 women have begun businesses that have improved their livelihood. Loans as small as $200 per month have provided the capital for these women to build equity in their own small business--allowing them to grow their business and improve their family's future. Six groups of five women join together to receive an SKS loan and meet weekly to make interest payments that reach upwards of 28%. SKS's for-profit model ensures that these women take their loans seriously and they cooperate within the group to cover the weekly payments. In the several years since SKS began this lending effort, they report a 99% repayment rate.