Broad Business Model

Rang De is a RBI registered and regulated NBFC peer-to-peer (P2P) lending platform that facilitates financial inclusion by connecting borrowers from low-income communities with individual lenders (social investors) who are willing to invest in these communities. The platform operates with a mission to alleviate poverty and empower underserved communities through access to affordable credit.

Borrower Onboarding and Assessment:

Rang De partners with various non-profit organizations, for profit entities and self-help groups(referred to as ‘’Impact Partners’’ on the platform) to identify and onboard potential borrowers from low-income communities. The platform conducts a thorough assessment of the borrowers' creditworthiness, taking into account factors such as their income sources, repayment capacity, and social circumstances. This assessment helps ensure responsible lending and minimizes the risk of default.

Lender (Investor) Onboarding:

Rang De onboards individual lenders (investors) who are interested in supporting financial inclusion and sustainable development. The platform provides lenders with the opportunity to contribute to the upliftment of low-income communities by lending small amounts starting from as low as hundred rupees. Lenders can choose to invest in specific borrower profiles or sectors based on their preferences and risk appetites.

Loan Facilitation and Disbursement:

Once borrowers and lenders are matched on the platform, Rang De facilitates the loan agreement process and ensures that funds are disbursed to the borrowers through secure banking channels. The platform leverages technology to streamline the loan disbursement and repayment processes, minimizing operational costs and ensuring transparency.

Repayment Management and Collection Support:

Rang De closely monitors the repayment performance of borrowers and provides collection support services to ensure timely repayments. In cases of delay or default, the platform works closely with its partner organizations and borrowers to understand the reasons and explore viable solutions, including restructuring or rescheduling loans when necessary.

Fee Structure:

Rang De generates revenue by charging a nominal processing fee to borrowers, typically a percentage of the loan amount. The Impact Partners are charged a fee for using the platform and other services provided by Rang De in onboarding of borrowers and disbursing of loans to them. These fees cover the operational costs of the platform and contribute to its sustainability. Additionally, lenders are charged a small platform fee for facilitating the lending process and managing the loan lifecycle.

Escrow and Fund Management:

All transactions on the Rang De platform are conducted through secure escrow accounts managed by reputable financial institutions. This ensures the segregation of funds and prevents misuse, enhancing trust and transparency for both borrowers and lenders.

Social Impact and Reporting:

Rang De is committed to creating a positive social impact by providing access to affordable credit to underserved communities. The platform regularly reports on the social and economic impact of its lending activities, highlighting success stories, empowerment initiatives, and the overall contribution to sustainable development goals.

By leveraging technology, partnerships, and a fee-based model, Rang De aims to create a sustainable and scalable platform for facilitating financial inclusion and empowering low-income communities through peer-to-peer lending.