Courtesy: Rang De
In an earlier article, we had spoken about the huge potential for person-to-person lending in India and how DhanaX is tapping into this potential. Rang De is another organization working in this field. While DhanaX is a social business entrepreneurship, Rang De is a not-for-profit organization: this translates into a direct reduction in the interest rate for the borrower, and even for the lender 
One can borrow from Rang De at an interest rate of 8.5% flat. For every Rs 1000.00 borrowed for one year, one must return Rs 1085.00 over the year. Out of this:
- 5% or Rs 50 goes to the field partner (the people who disburse the loan to, and collect the payment from, the borrower)
- 2 % or Rs 20 goes to the social investor
- 1% or Rs 10 goes to Rang De
- 0.5% or Rs 5 goes to a contingency fund in case of default by, or death of, the borrower
Clearly, an investment on Rang De has a higher social return than a financial one.
Rang De also started Rang De Education some time back. Under this scheme, Rang De offers education loan, at the beginning of the academic year, at 5% interest. To ensure that the money is used for the right purpose, Rang De gives education vouchers, instead of money, to the parents. The parents then present the vouchers to the school to enroll their child.The parents are made responsible for repaying this loan. The loan is offered to students based on their past performance and their need. Rang De is currently working with an NGO called Roshan Vikas to implement this project in Hyderabad. The lender is not payed any interest, except for the satisfaction of helping a student study.
Rang De has so far disbursed over seven and a half million rupees worth of loan to more than a thousand four hundred borrowers. They are well on their way to “sharing the colours of joy” with people. What about you?
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