Frequently Asked Questions
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Who are Rang De borrowers?
Rang De borrowers are individuals from low income households who require access to fair credit. The loan you give as a Social Investor is utilised to meet fundamental needs like livelihood and education.
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How are the borrowers selected?
Borrowers are selected by Impact Partners based on their family income, their access to finance from traditional sources and other socio-economic factors. Our aim is to reach out to under-served communities, focusing especially on first time borrowers. All borrowers go through a financial literacy training module and their understanding is evaluated based on a financial literacy assessment.
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Who is an Impact Partner?
Rang De works with community based organizations doing extraordinary work in India at it's grassroots. These organizations share Rang De’s vision of making fair credit accessible to all.
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Why do we need Impact Partners?
Our Impact Partners play the crucial role of identifying the need, curating borrower profiles & facilitating disbursal and recovery of loans. They are also responsible for conducting financial literacy training, hand holding and mentoring individual borrowers by providing the much needed guidance on effective financial management and loan utilization to boost incomes. 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 also help us track the social and economic impact of Rang De loans on the community.
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What is the interest rate breakup on the loan products that Rang De offers?
Rang De charges an interest rate of 18% to the borrower, out of which 7% is apportioned to the social investor, 9% to the impact partner & 2% to Rang De.
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What is the minimum and maximum investment that I can make?
An individual can invest any amount between INR 100 and INR 10 lacs, at any given point of time across all P2P lending platforms. The investment per borrower cannot exceed INR 50,000.