We use our network to identify individuals in rural and semi-urban parts of India who require loans for small household businesses, agricultural inputs, employment training programs, etc. The borrowers are typically people from extremely low-income households who require funds for education or working capital for their tiny businesses. Over 80% of our borrowers are considered ‘below the poverty line’ however, even those living slightly ‘above the poverty line’ are not earning enough to provide for their basic needs (food, clean water, health care, and education) for their families. The borrowers are evaluated to verify their loan history, credit history, various income streams, willingness to repay, training needs, and experience with the business they want to use their loan for. Only then is the borrower approved for a loan through MicroGraam.
After the loan is disbursed, MicroGraam, through its network, monitors the end use of funds and tracks the business activities / income generation of the borrower.
The easiest method is to choose one of the featured borrowers shown on the Lend page. You can sort through the hundreds of borrowers posted by using the filters on the left side if you want to find a person with specific needs, for example a woman who wants a dairy cow. Although MicroGraam provides loans for a wide array of needs, you may not always be able to find the particular kind of loan you are looking for. Loans are posted on MicroGraam for 4-5 weeks, afterwards they expire, and are no longer available to lend to. Certain types of loans like education and agricultural loans are available seasonally depending on when a college course or growing season begins. If you have any further questions on why a particular loans is not available, feel free to Contact Us and we can explain which loans are available and why.
For each loan you have to specify the amount of money you would like to lend. We suggest that you divide your total investment among multiple borrowers to diversify your investment and help more borrowers. The amount you lend is a personal decision dependent on your risk appetite and should be one of the many components in your investment portfolio. However, you should bear in mind that Reserve Bank of India regulations prohibit you from lending more than Rs. 50,000 to any single borrower and more than Rs. 10,00,000 in total. These limits are considered by aggregating all your loans across all peer-to-peer platforms.
MicroGraam has created many different methods to transfer funds for your loan. Please note that the funds must be in INR. We cannot accept funds in foreign currency. Once you choose a borrower and want to make a loan, you are given the following options for payment.
More detailed information for each payment option is given after you choose a borrower. You can call or email us through the Contact Us section if you have further questions.
MicroGraam does not charge lenders any fees. However, depending on the payment method you use, the service provider may charge nominal fees.
You can login to your account to view the status of your loans any time, by clicking the 'My MicroGraam' tab. For any loan related queries, please write to firstname.lastname@example.org
This means that we are waiting for more lenders to fund your borrower to reach the requested loan amount. You can help speed up this process by asking your friends to lend to your chosen borrower through the MicroGraam platform. On the borrower profile, we have provided easy links for Facebook, Twitter, and other social media platforms to share your borrower’s story and help fully fund his or her loan.
MicroGraam works hard to minimize all fees and charges so that borrowers pay as low a cost for the loan as possible. The total amount paid by the borrower consists of interest payable to the lender and MicroGraam fees.
MicroGraam fees cover expenses incurred for identifying and screening borrowers and other operating costs. Upfront fees of 3% on a 12 month loan approximately equals 6% APR. APR (Annual Percentage Rate) is the annualized rate that represents the actual yearly cost of funds over the term of a loan.
We measure the impact of loans in terms of the increase in income of the borrowers at the end of the loan repayment term. We conduct random surveys of our borrowers to evaluate the change in the quality of life that our borrowers experience as a result of our loans.
The repayment rate indicates the percentage of the amount of loans disbursed through the MicroGraam platform that have been repaid. Over the last two years, borrowers on our platform have maintained a 100% repayment rate on their loans and, over the last three years, a 99% repayment rate.
Repayment rate for all loans originated through our platform is 99% since we began. While every effort is made to screen and assess the borrower profiles we post on the platform, we do NOT offer any guarantee or assurance that your loans will be repaid by your borrowers. Lenders are advised to exercise due caution while evaluating each borrower profile.
Loans will be repaid directly by the borrower and the funds will be transferred to lenders accounts through designated escrow accounts which have a duly appointed trustee. The repayment information is available in your My MicroGraam account. After being repaid, lenders can choose to lend again to other borrowers
In traditional philanthropy, donors give funds one-time to a beneficiary. The funds get used only once. In a lending approach through MicroGraam, the same funds can be used for a new borrower after each repayment cycle. This can be done by you re-lending the amount received from one borrower to another.
Currently, the rural poor can obtain loans from different sources at rates ranging from 24-36% per annum. MicroGraam caps the loan charged to borrowers at around 16-18%, avoiding unsupportable interest rates. By lending through MicroGraam, not only do you get a reasonable rate of return, you also help rural youth and entrepreneurs in the process. Through MicroGraam, your money can change another person’s life, in a way that few other investments can.
Yes, you can support the cause in many ways by:
At this time, we are only able to accept funds in Indian Rupees (INR). If you have a bank account or credit card in India with INR funds, you can make a loan through MicroGraam. We cannot accept any other currency even if it is converted into INR through a credit card transaction.