SKS Microfinance Case Study - Lakshmi's Story

SKS Microfinance Limited (SKS) is a non-banking finance company regulated by the Reserve Bank of India and currently operating in 19 of India’s 28 states. SKS’ mission is to eradicate poverty by providing financial services to the poor.

A study conducted by the Navnirman Institute of Management on the microfinance industry in India provides case studies illustrating the human impact of SKS’s work.

One such story is Bandaru Lakshmi’s:

When Lakshmi came to Atukula Bazaar in Suryapet with her family, they were penniless. The family had no hope of surviving. Her husband was not doing too well at his business and no one was ready to lend them money. Lakshmi was worried about how they would bring up their two daughters and their son.

When Lakshmi found out about SKS operations in her village, she took an income generating loan of INR 10,000 (USD 212). She used this money to buy and sell readymade garments in the nearby villages. With a heavy load on her head, she went door to door and worked hard to save money. Confident about the sales and her hard work, she took a second income generating loan of INR 12,000 (USD 255). Later, she took a loan of INR 14,000 (USD 297) to purchase the readymade cloth for more sales. Her daily earnings grew steadily. Today, she clocks a monthly income of INR 30,000 (USD 638) per month.

Lakshmi is an inspiration to many today. A role model to others in Suryapet, Lakshmi recently felt most rewarded when her eldest daughter secured a job in Infosys.

“Thanks to the loans SKS extended to me time and again, I was able to give my children a decent education. Today people respect our family and I am grateful,” she says.

Further information


Partnership types

Doing business with the poor

Regions / countries / territories

Asia: India

Global issues

Job creation and enterprise development; Financial accessibility and management

Business sectors