In India many a times when you start a very small business like a tea shop or a grocery shop on low scale getting funded is little bit of problem because the amount required is like 500 or may be 2000 max. These amounts are generally not entertained by banks so what we do is get help from relatives or local people who are involved in this business.
Taking this factor into consideration, RangDe is giving a solution which is not only beneficial for people who are looking for such micro credit or micro loans but also for people who want to invest small amounts and make some extra money out of it.
To start using Rang De you can be either person who is looking for a loan or an investor who wants to help people by investing in their small business. This way you not only help such people who dont find right people to borrow money for but also make some extra money which keeps you up for further investments.
On asking RangDe, How do you assure that loan given comes back. Since its a small scale loan how do you track people just don’t run away or is there any security taken against it.
Smita one of their representative said :
Rang De works with a network of credible organisations at the community level. The responsibility of these organisations is to screen applications and facilitate disbursal and repayments. No individual can approach us directly for loans.
The field partner also ensures that applicants are members of either self help groups and joint liability groups. In both cases, the group plays a very crucial role in ensuring that repayments go on time. They are aware that failure to repay will affect their credit worthiness in the long run and will bring down their chances of getting the next loan. It is this model that works very well, especially with women.
Sounds good to me. So if you are looking for small business loan or you know anybody is actually looking for these kind of loans which are even difficult to get from bank, you can get in touch with Rang De !!