SKS Ultra Poor Program
Andhra Pradesh, India

Name of project: SKS Ultra Poor Program
Project implementer: SKS NGO
Project partners: None
Location: Andra Pradesh
Start date: 2007
No. of clients reached: 426 women
Research: Randomized impact assessment (village level) by the Institute for Financial Management and Research, Chennai; mid-term evaluation and qualitative research by Brac Development Institute
Consumption support: Rs.900 INR (US$18) on a “per needs basis” for 12 months
Livelihoods: Livestock, cultivation, trade, and tailoring
Financial service: Individual savings accounts at post offices; grain bank scheme in 50 villages
Additional services: SKS provides free health consultations; eye and hemoglobin camps; partners with government for veterinary and health support
Scale up: Plans to scale up to 24,000 people over five years across India; first step in October in Orissa

SKS is a famous microfinance institution based in Hyderabad, India. It is expanding into many states across India. The SKS Ultra Poor Program is run by SKS NGO, the parent organization of SKS NBFC.

The SKS pilot is being implemented in the Medak district, in northwest Andhra Pradesh. The pilot is being evaluated using village-level randomization by Shamika Ravi of the Indian School of Business, under the supervision of Jonathan Morduch of New York University. SKS is serving 500 households at a cost of $400 per beneficiary. The enterprise options are mostly goats or cows valued at $250. Their assets are slightly more valuable than those distributed in other pilots. For example, members receive a pregnant, mature cow rather than a young one. This ensures that the member is able to rapidly generate income from the asset, although caring for it may be more difficult. Rather than distribute a consumption stipend, SKS distributes a small livestock-care stipend every three months (as needed) to beneficiaries when they incur costs to feed or vaccinate their livestock. Along with enterprise training, SKS has incorporated a financial education module as a part of its weekly training sessions, which emphasize savings, budgeting, and income diversification. Additionally, SKS is piloting a grain bank scheme, in 10 villages. These grain banks allow women to voluntarily save fistfuls of food grain per day and pool it in a central location. In exchange, they can borrow whenever on need and repay at convenience.SKS is partnering with the government for health and veterinary support.

Project status
SKS is developing standard workbooks and replicable protocols for scaling up the program. In the Koraput, Orissa, region, a new program launched in June 2009, covering 1,000 tribal households replicating the same ultra poor model but customizing it to the needs of the tribal poor. SKS plans to scale up to 24,000 clients in next five years spreading across India.