Ram sharing about RangDe's work in Knocking out Poverty with Peer-to-Peer Lending using micro-credit at 2010 ThoughtBerg's Campus Ambassadors boot-camp

1. Knocking out Poverty in India
The
Campus Ambassadors – Boot Camp
30 Oct 2010

2. What is Inclusive Growth?
“Easy access to finance and markets, health care
and quality education across all low income
households.”

3. Kanakamma’s Story
A vegetable vendor in Orissa used
to borrow from the money lender
to sustain her business. What the
loan did was to get her into a state
of indebtedness.

4. Kanakamma’s Dream

5. How close are we to her dream?
Business Models in the Social Space
Let’s define Microcredit!
The Microfinance Movement
Measuring Impact?
Road to Financial Inclusion?
The Rang De Model

6. Business models in the social space
•For-profit social enterprise
•“For-profit” social business

7. Let’s define Microcredit!
“Providing collateral free loans to the poor to
help them escape poverty”

8. The Microfinance Movement
The Global Context
Microcredit is a concept that evolved as early as the 18th century but gained momentum
only after the establishment of the Grameen Bank in Bangladesh by Prof. Muhammad
Yunus in 1976.
By lending amounts as small as $5 to women involved in making bamboo stools in Jobra
village out of his own resources, Prof Yunus proved that micro loans can effectively tackle
and reduce poverty. Over the years Grameen bank has disbursed several such small
loans and assisted poor entrepreneurs to afford low cost credit to improve their small
scale business units.
The Indian Context
The SHG- Bank linkages program initiated by NABARD at around the same time as the
evolution of the Grameen Bank. Focussed on group collateral but the emphasis was on
savings.

9. Measuring Impact?
•100% Repayment Rates
•Social Accounting
•Turning a blind eye

10. Road to Financial Inclusion?
•Regulated interest rates
•Practices of loan disbursement and collection
•Financial Literacy for making an informed choice
•Loans for Self- sufficiency and not for indebtedness
•Credit Rating for borrowers that will be recognised by banks
•Move from dependency to self sufficiency
•Access to timely loans

11. The Rang De Model :
an initiative to provide cost-effective microcredit

12. Rang De – Our vision
Our vision is to make poverty history in India by reaching out to underserved
communities through microcredit.
We do this through a network of committed field partners and social investors and
offer microcredit that will have a positive impact on business, education, health
and environment of the communities we work with.
Rang De – How we are different?
•Cost of capital
•Sources of funds
•Awakening of the civil society
•Financial Democracy

13. Rang De Loans
Loans for Businesses
These loans are facilitated at a rate of 8.5% flat.
Loans are for income generation activities.
Around 150 different activities funded so far.
Micro Enterprise Loans
These loans will be facilitated at a rate of 10% flat.
Loans will be facilitated for small businesses.
Loan size in excess of Rs.25,000
Partner : 5%
Social Investor : 2%
Rang De : 1%
Contingency Fund : 0.5%
Partner : 5%
Social Investor : 2%
Rang De : 1%
Contingency Fund : 0.5%
Contingency Fund : 1%
Rang De : 2%
Partner : 3%
Social Investor : 4%
Contingency Fund : 1%
Rang De : 2%
Partner : 3%
Social Investor : 4%

14. Rang De Loans
Loans for Primary & Secondary Education
Loans are facilitated at a rate of 6% flat.
Loans are facilitated to fund school fees, stationery,
uniform and other expenses.
Loans are facilitated in the form of Education Vouchers.
Schools accept education vouchers in lieu of fees,
uniforms and other expenses.
Partner : 4%
Social Investor : 1%
Rang De : 1%
Contingency Fund : 0%
Partner : 4%
Social Investor : 1%
Rang De : 1%
Contingency Fund : 0%

15. Kanakamma’s Story
Loan Availed: Rs. 5000
Loan disbursed in: Feb 2009
Loan Repaid : Feb 2010

16. Rang De Video: Sow the seeds of change!

17. Contact UsRamakrishna NK | Co-founder & CEO |
www.rangde.org | 97909 67649 | ram@rangde.org |
Thank you!