What is this initiative about?
Rang De is a web based social initiative that supports rural entrepreneurs from low income households by providing access to low cost microcredit. We aim to address credit needs for business and education of the low income households we reach out to. Rang De microcredit for business and education is funded by individuals and corporate social investors.  

 What's the difference between the Rang De model and traditional micro-finance?
Rang De is an innovative attempt to bring down the cost of microcredit by enabling individuals to lend small sums of money via our online portal (www.rangde.org). The main difference between Rang De and traditional microfinance is Rang De’s focus on its mission to lower the interest rate and its fund raising model. By raising social investments from individuals, Rang De is able to bring down the cost of microcredit and offer loans to people at rates that were once unthinkable.

Is Rang De a non-profit organisation?
Rang De is registered as a public charitable trust with a mission to reach out to low income households with cost-effective microcredit. We will continue to remain a non profit organization with a strong social focus to ensure that our mission does not get diluted. Any donations made to Rang De are exempt under section 80G as per Income tax rules.

How is Rang De different from other peer-to-peer lending models?
Rang De leverages the internet and the peer to peer model to lower the cost of microcredit. We ensure that we make good use of getting low cost capital from social investors and transfer the benefit to the end user. Our interest rates to the end user ranges from 6%flat p.a. to 10% flat p.a.

Interest rates that the borrower pays for every loan product is published on the website. Rang De’s field partners are not allowed to charge documentation charges or loan processing fees.If these come to light, depending on the severity, the partnership is either terminated or suspended. And yes, we do believe that just like there can be good stories, there are distress stories as well - both of which are shared with social investors.

What is the interest rate breakup on the loan products that Rang De offers?
The interest rate breakup of borrower repayments (in flat rates) for each of our loan products is shown below.

Loan Product Field Partner Rang De Social Investor Contingency Total (flat) Total (APR)*
Business 5.00% 1.00% 2.00% 0.50% 8.50% 15.33%
Education 4.00% 1.00% 1.00% - 6.00% 10.90%
Microventure 3.00% 2.00% 4.00% 1.00% 10.00% 17.97%
*APR interest rates are calculated on a monthly repayment schedule.


The interest rate breakup of the yield to each stakeholder (in APY) for each of our loan products is shown below.

Loan Product Field Partner Rang De Social Investor Contingency Total (APY)*
Business 9.02% 1.80% 3.61% 0.90% 15.33%
Education 7.27% 1.82% 1.82% - 10.90%
Microventure 5.39% 3.59% 7.19% 1.80% 17.97%
*APY interest rates are calculated on a monthly repayment schedule.