How does the entire model work?
The model works as follows :
- (Potential) social investors can search and choose borrowers to make a social investment. You can invest as little as Rs.100.
- Rang De’s field partners receive and disburse loans to their borrowers.
- Borrower repays loan according to a repayment schedule.
- You receive your money at the end of the tenure and earn an interest of 2% flat p.a. (3.5% APY)
Are the details on the borrower profile and the application details exactly the same?
We receive application forms that are KYC(Know Your Customer) compliant. The data on the application form is used to create profiles for the borrowers and uploaded on to the website. The profiles represent the data on the application form.
How long does Rang De take to do the screening?
We aim to process the application forms on a priority. They are screened and uploaded on RangDe.Org within 48 hours of receiving them from the field partners.
Where are Rang De's borrowers located?
Rang De’s borrowers are from underserved communities across India. Our focus is on states where a large section of the population is not included financially and need access to microcredit.
Can I submit a borrower application for myself?
Currently, the first level of application screening is done by our field partners. We do not accept loan applications from individuals.
Why are most of the listed borrowers women?
We do not have any preference for gender. It is prerogative of field partners to identify and to work with communities of their choice. We are open to facilitating funds to men for their business needs.
Why are so many borrowers in the same occupation?
Some of the borrowers having the same occupation are members of a group of borrowers belong to same communities and at times are involved in similar activities. This is also an indicator of group homogenity. Having said that, we have facilitated funding for more than 500 types of activities.
Why are the surnames of some borrowers the same? Are they part of the same family?
At times the borrowers belonging to a particular community can have similar surnames and at times are also involved in similar businesses.
What happens incase a borrower defaults in repayments towards their Rang De loan?
If a borrower defaults on a loan due to a genuine reason (i.e. death, casualty, or a natural calamity) a part of the principal amount will be recovered from Rang De's contingency fund and the remaining portion will be borne by the social investor. In case of process violations (by Rang De or a Field Partner) the defaults (principal amount) will be met in full by Rang De or the field partner as the case may be. For more details, you can refer to our default policy and procedure document.
Adobe Acrobat Reader or any PDF reader is required to read the document. Adobe Acrobat Reader can be downloaded from the Adobe website.