Rang De: A Citizen Movement Against Poverty Through Financial Inclusion

The Logical Indian

November 12th, 2015

 

Swapnali Deshmukh is pursuing optometry doing her internship program at Laxmi College of Optometry, Panvel. What makes her journey remarkable is her struggle against the odds to pursue her education and an organization which has supported her through this.

Swapnali, the youngest of 4 sisters comes from a small village in Raigad in Maharashtra. Her father, Jagannath who is a daily wage construction worker was keen to ensure to provide her daughters the best opportunities in life. Having passed her high school with distinction, Swapnali chose to study Optometry. However paying close to Rs 2500 for the hostel fees in addition to her college fees was proving a big challenge for Swapnali. Given her situation, Laxmi College of Optometry recommended Swapnali for an education loan from Rang De.

Rang De is a non-profit organization that works to fight poverty with a variety of grassroots organizations working in sectors ranging from agriculture related farm producer companies, waste management, sanitation, education, handloom related organizations and others working with underserved communities all over India. These field partners work with the communities through the entire loan lifecycle connecting them to Rang De and its social investors. Rang De’s co-founder Ramakrishna NK, an Ashoka Fellow said “The motivation to start Rang De (in 2008), which is India’s first peer-peer lending platform came from the desire to reduce the high interest rates that the poor and underprivileged have to pay to traditional microfinance institutions.” Smita Ram, the other co-founder adds, “We give preference to first-time borrowers as we want to reach out to more people and lift them out of poverty.” After 7 years of existence, Rang De has facilitated over Rs 30 crore ($ 5.1 million) of social investments with repayment rates of 99.8% through its 8000+ social investors. Most of its borrowers (94%) are women.

Swapnali’s loan (at less than 5% p.a. flat) was funded by over 50 social investors. Laxmi also topped the final year of her college and recently presented a paper on Contact Lenses at an international conference in Chennai, plans to repay the loan after finishing her degree. Once the social investors are repaid the money, they can withdraw the money or choose to reinvest it to other borrowers as well.

The Logical Indian Community admires the work of Rang De to deepen financial inclusion and fight poverty and believes that we need many more such institutions.

– Rohit Parakh

Share your thoughts..

Related Stories

RBI Data Shows Worsening Distress In The Farming Sector Yet Farmers Are Better Borrowers Than Corporates

My Story: ‘Son, Whatever You Do In Life, Never Be Indebted To Someone. You Lose Your Freedom’

57 Borrowers Owe Rs 85,000 Crore To Banks

57 Borrowers Owe Rs 85,000 Crore To Banks: SC Asks Why Can’t Their Names Be Revealed

My Story: She Took A Loan For Her Brother’s Education & Sacrificed Her Own, Although She Was A Bright Student

Raghav Raghunathan

Despite Being A Qualified Engineer, This Man Chose To Be A Helping Hand For Tribal Farmers

Discussion Paper On Regulating Crowd-Funding & Peer-To-Peer Lending, Know What It Is All About

Latest on The Logical Indian

News

Woman Duped Of Rs 75,000 After Sharing OTP With Telecaller

News

Most Of Nirav Modi’s Fraud LoUs Issued In 2017-18, Says CBI FIR

Awareness

Average Dalit Woman Dies 14.6 Years Earlier Than Woman From Higher Caste: UN Study

News

“Won’t Leave India”: Rotomac Owner Who Defaulted On Over Rs 800 Crore Loan

News

UIDAI Refuses To Disclose How Much It Spent On Advertising Aadhaar In Past 8 Years, Despite Being Asked Under RTI

Awareness

Sex Ratio At Birth Dips In 17 States, Gujarat & Haryana Worst Performers: NITI Aayog Report