Originally written for IDEX and published at http://commonthreadx.ning.com/blog/introducing-my-placement-enterprise-milaap-loan-a-little-change-a?context=category-My+SocEnt+Placement+Profile
Micro-finance is one domain that has caught my attention off late and this
has a great potential for social entrepreneurs. It has the power to create an impact on families instantly by helping them create a revenue stream. With this passion I happened to be placed at Milaap. Let me briefly run you all through the journey of Milaap.
Micro-finance is one domain that has caught my attention off late and this
has a great potential for social entrepreneurs. It has the power to create an impact on families instantly by helping them create a revenue stream. With this passion I happened to be placed at Milaap. Let me briefly run you all through the journey of Milaap.Let's Empower India
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| Thanks to ten awesome folks around the world, Annapurna has been able to expand her Self Help Group and increase revenues by 15%. Help Milaap provide sustainable sources of income to ambitious entrepreneurs like her! |
Introduction
I'm sure most of us have heard the carpenter, cobbler, driver, gardener, maid & others usually who are at the bottom of the pyramid talk about how difficult it is for them to get loans to support their children's education, getting the groceries every month, getting a toilet built or even to have access to a clean drinking water. May be most of us wouldn't even think of planning to cover such expenses but yes it would matter for most of the others i.e, over 700 million people living at less than 2 dollar wages in the world. Banks having higher interest rates would let them eliminate from this supply chain. This is where Milaap empowers the individuals who can lend to make social investments to better the lives of over 700 million people to get access to the basic facilities while lending on a vary low rate of interest which the people at the BOP can afford.
I'm sure most of us have heard the carpenter, cobbler, driver, gardener, maid & others usually who are at the bottom of the pyramid talk about how difficult it is for them to get loans to support their children's education, getting the groceries every month, getting a toilet built or even to have access to a clean drinking water. May be most of us wouldn't even think of planning to cover such expenses but yes it would matter for most of the others i.e, over 700 million people living at less than 2 dollar wages in the world. Banks having higher interest rates would let them eliminate from this supply chain. This is where Milaap empowers the individuals who can lend to make social investments to better the lives of over 700 million people to get access to the basic facilities while lending on a vary low rate of interest which the people at the BOP can afford.
The Inception
Milaap is an online fund raising platform that encourages people around the world to fund & impact lives who are in need of basic facilities in India. It is the only online platform in the field of microfinance domain which enables people globally to lend to the one's in need through online platform. This has led Milaap to be the first & only platform for NRI's to lend in India. These loans are aimed to facilitate the borrower in getting access to the basic facilities like sanitation, clean water & renewable energy. Vocational training or skill development is a new domain wherein Milaap is trying to lend a helping hand for the Youth which creates a path way to build career. Milaap is based in Bengaluru, India with its headquarters in Singapore started in 2010.
What's your Cause?
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| Two investment bankers, Shiva and Vikram cycled across Singapore and raised funds for 50 families in need of clean water. Inspire your friends and family to do more. |
The Kick Start
So, how did the Milaap journey begin. Anoj Viswanathan was inspired by the impact of a $10 solarlantern sold on credit to the extremely poor in tribal Orissa. Founded in June 2010 by Sourabh Sharma, Anoj Viswanathan and Mayukh Choudhury. It took Milaap almost a year to gain approval from the Reserve Bank Of India (RBI) to enable lenders outside India to lend to India through their website.
So, how did the Milaap journey begin. Anoj Viswanathan was inspired by the impact of a $10 solarlantern sold on credit to the extremely poor in tribal Orissa. Founded in June 2010 by Sourabh Sharma, Anoj Viswanathan and Mayukh Choudhury. It took Milaap almost a year to gain approval from the Reserve Bank Of India (RBI) to enable lenders outside India to lend to India through their website.
Idea Generation
Microfinance Institutions(MFI's) that lends micro credits to the entrepreneurs usually tend to have high rate of interest rates as these institutions in turn borrow loans from banks at a high rate of interest which places the borrower to bear the higher rate of interest. The borrowers are usually taking the loans form the MFI's as they need in small scale wherein it becomes difficult to get it approved. Further the borrowers wouldn't be willing to pay a high rate of interest as they are taking a loan to pay off the liabilities which makes up their operation cost. With this scenario it would become very difficult for an individual to approach bank or MFI's to get loan in order to cover the cost of basic facilities like water, sanitation, drinking water & vocational training. Thus, Milaap comes up with an idea of sourcing funds from individuals globally who are willing to lend & thereby able to provide loans at a lower rate of interest. This has been possible because the of eliminating the MFI's borrow from banks.
Crux Of The Business Idea
Milaap in their online lending platform display the profile of the borrower who seek to help to get the basic needs like clean drinking water, sanitation, healthcare, electricity, education etc., individuals who have access to internet & can choose the borrower whom they want to lend & thereby fund a part of the loan. The Lender can also track as to how the money lended is used. The best part of such a donation is the lender receives back the money given at the end of the loan term. Now, you might wonder how the people at the BOP get connected to Milaap as they lack internet access. Well, Milaap has collaborated with other organisations(field partners) who are working with the people who are looking out for finance. Thus, the field partners collect the loan from the borrowers creating a transparent place to lend & borrow. By investing in such projects Milaap is looking at solutions at the fundamental level considering the crucial parameters that impact the purpose of the borrowing.The profit model involves a mix of profit & non profit models to enable a sustainable model. Basically aiming at sustainable scaling business model.
The Road Ahead
Milaap on a continuous basis is expanding its business having its impact on millions of people. These impacts are not only solving the financial problems but also aims to focus on increasing the productivity of an individual, income generation & reducing the current expense. Certain initiatives by Milaap like raising funds through campaigns involves youth in majority. This helps indirectly in bringing about an awareness among the youth to think of the social issues around & do their bit to make this place a better world to live in.
You Can Help Make a Difference, visit http://www.milaap.org/
