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  • What is a social investment?

    Any fund provided to beneficiaries listed on RangDe.Org is a social investment. The money is provided to beneficiaries for their income-generating livelihood activities activities and education needs.

    What is Microcredit?

    Microcredit refers to small, collateral free loans (typically Rs 5000-15000) that are lent to low income households. These loans are usually utilised for income generation activities and the borrower repays the loans according to a preset repayment plan. For more details, you can read our About Microcredit page.

    How can Microcredit make a difference?

    Microcredit provides the necessary financial stability to many low income households in Indian villages, semi urban and urban areas. It gives them the opportunity to access finance at reasonable rates of interest and provides a sustainable alternative to the local money lender.

    What is an MFI?

    MFI is an acronym for Microfinance Institution. Most MFIs are non governmental organisations registered as trusts or societies. Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to formal banking and related services.

    How does traditional microfinance work?

    Traditionally microfinance institutions borrow capital from the banks at a fixed rate of interest of 5.5% to 8.3% (or 10% - 12% diminishing rate of interest) and the MFI (microfinance institution) then adds the cost of servicing the loan (which varies for each MFI due to cost of servicing loans) before disbursing the loan to the borrower. Thus the interest paid by the borrower of microcredit ranges from 13.5% - 20% fixed rate of interest (or 24% - 36% diminishing rate of interest).

    I'm confused; what is Rang De?

    Rang De is a web based social initiative, that supports rural entrepreneurs from low income households by providing access to low cost microcredit. Rang De microcredit for business and education is funded by individuals and corporate social investors.

    How does the model work?

    The model works as follows:

    • (Potential) social investors can search and choose borrowers to make a social investment, with as little as Rs 100.
    • Rang De's impact partners receive and disburse loans to their borrowers.
    • Borrower repays loan according to a repayment schedule.
    • Individuals who have invested in borrowers receive their principal at the end of the tenure and earn an interest of 2% flat p.a. (3.5% APY)

    Is Rang De a non-profit organisation?

    Yes, we are and we will always be. Read more about our organisation structure.

    What's the difference between the Rang De model and traditional micro-finance?

    The main difference between Rang De and traditional microfinance is Rang De's focus on lowering the interest rate payable by borrowers, 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.

    How is Rang De different from other peer-to-peer lending models?

    Rang De leverages 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 4.5% flat p.a. to 10% flat p.a. Interest rates that the borrower pays for every loan product are published on the website. Rang De's impact 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.

    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 Impact partner Rang De Social Investor Contingency Total (Flat) Total (APR)*
    Business 5.50% 2.00% 2.00% 0.50% 10.00% 17.97%
    Higher Education 2.00% 2.00% - 0.50% 4.50% 8.41%
    Primary Education 4.00% 2.00% - 0.50% 6.50% 11.79%
    Microventure 2.00% 2.00% 4.00% 1.00% 9.00% 16.22%
    Special Loans 5.00% 2.00% 2.00% 1.00% 10.00% 17.92%

    *APR interest rates are calculated on a monthly repayment schedule.
    The table below provides the interest rate breakup of the yield to each stakeholder (in APY) for each of our loan products.

    Loan Product Impact partner Rang De Social Investor Contingency Total (APY)*
    Business 9.88% 3.59% 3.59% 0.90% 17.97%
    Higher Education 3.74% 3.74% - 0.93% 8.41%
    Primary Education 7.25% 3.63% - 0.91% 11.79%
    Microventure 3.60% 3.60% 7.21% 1.80% 16.22%

    *APY interest rates are calculated on a monthly repayment schedule.

    What is the minimum and maximum investment?

    The minimum investment amount is INR 100 and the maximum investment amount can be anything the investor is willing to invest.

    How do I make a social investment?

    As a resident Indian/ Expat residing in India you can make a social investment in borrowers of your choice by following the steps below:

    • a. View our borrower listing and enter the amounts you would like to invest in borrowers of your choice.
    • b. Choose whether you want to contribute your return on investment and/or make a donation to Rang De
    • c. Make a payment towards your social investment using Rang De credit or your preferred payment option.

    Where can I track progress on my investment?

    As a social investor, you can login to your account using your email address, registered on RangDe.Org. Once you login, you can access the repayment progress made by all your borrowers. You will also receive a statement of social investments on a monthly basis, from our team.

    What is Quick Invest?

    The quick invest option allows you to make a social investment without choosing individual borrowers. You will be prompted to set your preferences, based on which the system will allocate your funds to borrowers.

    Are social investments on Rang De exempt from Tax?

    No. Only donations made to Rang De for its operations are exempt from tax.

    Are social investments on Rang De treated as donations?

    Social Investments on Rang De are different from donations as the investors get back the principal invested, along with a nominal financial return, when the borrowers pay back their loan. Even though the financial return is nominal, the social return is phenomenal!

    What is my return on social investment?

    You will earn an interest of 2.0% flat p.a. (3.5% APY) on your investment to borrowers of business loans. Your interest is calculated from the day the loan is disbursed to the borrower. This typically will be around a month's time from the date of investment.

  • Will a social investor get a receipt for payment on making a social investment?

    Whenever you make a social investment/ donation on Rang De, you will receive an email notification confirming all the details of the social investment. Please get in touch with us if you do not receive these updates.

    How will I know that my investment has reached the concerned borrower?

    On the day the loan is disbursed, you will receive an e-mail with the details of the disbursement. This typically happens within 5 days after the Invest by Date (the date by which we will raise investments for borrowers).

    Is my investment and return assured?

    Any social investment made via Rang De is for an unsecured loan for a low income household. Your investment and return are not assured. We recommend that you invest smaller sums of money across borrowers in different geographies to de-risk yourself.

    What will be the mode of repayment to the social investors?

    When the loan matures (the loan is completely repaid by the borrower) you will receive an e-mail informing that the loan has been fully repaid. You will have two options: either to reinvest the money or opt to withdraw it to your bank account.

    In what time will I get my social investment repaid?

    You will get back your entire social investment at the end of the loan tenure (typically 1 year or 2 years) with a return of 2.0% flat p.a. (3.5% APY), provided there is no default. However your principal plus interest is repaid as equated monthly instalments.

  • What are the payment options I can use to complete my social investment?

    As an Indian National living in India or an Expat currently residing in India, you can use the following payment options to complete your social investment

    • Credit/Debit Cards - MasterCard, Visa and SBI ATM-Cum Debit Cards
    • Netbanking
      • ICICI Bank
      • State Bank of India
      • Axis Bank
      • IDBI Bank
      • Union Bank of India
      • Punjab National Bank(Retail and Corporate Accounts)
      • HDFC Bank
    • NEFT Transfer to our bank account after completing your social investment
    • Drop a cheque at an ICICI, HDFC or HSBC ATM in India

    What is the "invest by date"?

    For every loan borrower who applies for a loan, there is a waiting period of 30 days during which the loan amount needs to be raised. The "invest by date" indicates the cut off date by which social investors need to make investments to the borrower.

    Why does the borrower pay 10.0% flat p.a.(17.97% APR) when the social investor only gets a return of 2% flat p.a. (3.5% APY)?

    As a social investor, Rang De gives you the same return that you would earn on your savings bank account. The 10.0% flat p.a. which is paid by the borrower is split among the impact partners, social investors, Rang De and fund for contingencies. The social investments that you make are received by Rang De's impact partners; who identify borrowers, disburse loans and collect repayments ; they are paid 5.5% just to manage these costs. Rang De gets 2% flat on every loan for its operational costs, and 0.5% is kept aside for contingencies.

    What happens to the borrower if the loan is not completely raised in the time it was supposed to be raised?

    In situations where the loan is not completely raised within the speculated amount of time, Rang De uses its Corporate CSR funds to fulfil the balance amount left to be raised.

    What is auto invest?

    Auto invest is a feature that allows you to automatically invest your Rang De Credit. You can turn it on in your settings page. You will receive an email notification every time your Rang De credit is auto-invested

    How often will my Rang De Credit automatically get reinvested?

    If you have selected the auto invest option, your Rang De credit will be reinvested as and when there is outstanding loan demand that has not been met within the stipulated time. The reinvestment will be subject to the availability of borrowers that fit your preferences.

    Rang De Gift Cards

    How can I redeem a Rang De gift card?

    • Visit Gift Card Redeem page at
    • Enter the Gift Code included in your gift card and click redeem

    The gift card amount will be added to your Rang De Credit balance. You can check your Rang De Credit balance on your Rang De dashboard at

    What are the terms and conditions for withdrawal?

    • You can withdraw the repayments that are credited into your Rang De account.
    • You can only withdraw the money that you have received as repayments from the borrowers.
    • The entire investment amount can be withdrawn only at the end of the loan tenure and on the condition that the borrower has repaid the loan.
    • The minimum amount you can withdraw is Rs.100 (unless you do not have any outstanding repayments)
    • If you have less than Rs. 100 and no outstanding repayments, then you will only be able to withdraw all of your Rang De Credit
    • Withdrawals can only be made to a bank account in India.

    How do I withdraw my Rang De Credit?

    • Navigate to your dashboard by clicking here
    • Click "Withdraw" in the dashboard header to the right side of your available Rang De Credit.
    • Enter the amount of Rang De Credit that you want to withdraw and click submit after entering your account details.

    What is the process once I have placed a request for withdrawal?

    We will process your request and transfer the funds to your bank account or send your cheque within 7 working days. You can choose to get your withdrawal amount through a NEFT transfer or we can send you a cheque.

    Are there any charges for withdrawals?

    Yes, the charges are displayed in the withdrawal page, under the corresponding options.

    Can I withdraw my Rang De Credit to a bank account abroad?

    No, only to bank accounts in India.

    I have less than Rs. 100 of credit and I will not be getting any repayments. Will I be able to withdraw my remaining credit?

    Yes, you will.

  • 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 needs access to microcredit.

    How are the borrowers profile listed on the website compiled?

    We receive application forms from our impact partners 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?

    Application forms are treated on a priority and are screened and uploaded on RangDe.Org within 48 hours of receiving them from the impact partners.

    Can I submit a borrower application for myself?

    Currently, the first level of application screening is done by our impact partners. We do not accept loan applications from individuals.

    What happens in case 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 Impact partner) the defaults (principal amount) will be met in full by Rang De or the impact partner, as the case may be. For more details, you can refer to our default policy and procedure document.

    Who are the borrowers and how are they selected?

    Borrowers of microcredit are typically people of very low income households. The investment you make as a social investor is usually towards the working capital of an individual whose occupation is farming, livestock rearing, tailoring or other micro and cottage industries.. Borrowers are selected by impact partners based on their family income, access to finance from traditional sources and other socio-economic factors.

    Why are most of the listed borrowers women?

    We do not have any preference for gender and are open to facilitating funds to men for their business needs. It is prerogative of impact partners to identify and to work with communities of their choice.

    Why are so many borrowers in the same occupation?

    Some of the borrowers having the same occupation belong to same communities and at times are involved in similar activities. Having said that, we have facilitated funding for more than 300 different 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.

  • What are Rang De Evaluations?

    Evaluations are post disbursal interactions with borrowers to understand how the loan has been utilised and the impact it has had for the borrower. These evaluations are done by Rang De Team members and impact partners.

    What happens after the Evaluations?

    Evaluations are very important to everyone in the Rang De eco-system. Feedback from the evaluations is shared with the impact partner, as well as social investors (as stories). The impact partners are expected to work on the feedback within a given time frame and communicate this to Rang De.

    What do we do with stories of not-so successful stories?

    Evaluations are meant to report the reality as it is from the community. We share stories of hope and despair with social investors and work with our impact partners to address areas of concerns.

    What are the different types of evaluation that are done?

    We currently perform audio evaluations as well as field evaluations. Audio evaluations are done via phone conversations with the borrowers. Field evaluations are on the ground assessments done by Rang De team members, by visiting and interacting with the borrowers.

    What do the evaluations include?

    Rang De evaluations aim to capture information beyond the loan and its impact. It covers the following areas: Loan & loan utilisation, Impact of the loan, Financial Literacy of the Borrower, Loan Process & Compliance, Degree of Indebtedness, Feedback on the Loan Representative and Feedback on the impact partner.

  • What is an impact partner?

    Impact partners are registered non-profit organisations or non-profit microfinance institutions that work with underserved communities. With their partnership with Rang De, they are able to help reduce poverty and improve the quality of life of the communities.

    Why does Rang De need impact partners?

    We work through a network of impact partners identified after a thorough due diligence process. We do not lend to individuals or groups directly. Our impact partners identify borrowers from communities they work with. The impact partners are credible grass root level organisations and are responsible for identification of borrowers, disbursement of loans, and collection of repayments. Our impact partners cannot charge any overhead fee such as loan processing, or documentation fee from the borrowers.

    What is APR?

    APR (Annual Percentage Rate) refers to the interest rate on a loan that is calculated on an annual basis. A borrower will effectively pay interest on a loan that is equivalent to the APR i.e for a loan of Rs. 1000 taken over a year the interest to be paid is Rs. 100 in the case of flat interest. However as the borrower makes each repayment, the loan amount is reducing, which means that the interest amount should reduce too. This reduction is not included in a flat interest rate. Hence the flat rate is recalculated to give an APR. Rang De's borrowers pay an interest of 17.97% APR (10.0% flat p.a.) which is 10% less than the APRs of other MFIs world-over.

    What is APY?

    APY (Annual Percentage Yield) refers to the annual rate of interest received by the social investor, taking into account the effect of compounding. For example if a social investor has made an investment of Rs. 1000, they will get an interest of Rs. 20 after their repayments. However after each payment, they will get the divided interest on Rs. 1000 loan and not the remaining loan amount. Hence, the flat rate is recalculated to give an APY. Rang De gives its social investor an APY of 3.5% (2% flat).

    What is a flat interest rate?

    A flat interest rate refers to the interest rate a borrower has to pay on a loan if they pay it at the end of the repayment period. Rang De charges its borrowers a flat interest rate of 10.0% flat p.a.(17.97% APR) i.e. for a loan of Rs. 1000 taken over a year, the amount the borrower has to pay is Rs. 1100 (Rs. 1000 for the loan and Rs. 100 as interest) divided equally over each repayment period (monthly, weekly, quarterly).

    What are Rang De Impact partner Staff Loans?

    Rang De Impact partner Staff Loans have been set up with the objective to help the staff of Rang De's Impact partner organizations, to access low cost loans through Rang De. The loans can be taken to attend important needs like business, education, asset creation for self-use.

    When is an organisation eligible for Rang De Impact partner Staff Loans?

    In order to access the loans for its employees the Impact partner should meet the following criteria

    • The organization should have been Rang De's Impact partner for at least 1.5 years and have a minimum average outstanding portfolio of Rs 25 lakhs.
    • The organization should have satisfactory relationship with Rang De which includes timely repayments, submission of reports etc.