No. 549, 26th Main,
14th cross, JP Nagar phase 1
Bangalore, India - 560 076
e-mail: feedback AT milaap DOT org
phone: +91 8880340333
Milaap enables you to lend to India's working poor so they can get access to education, clean water, safe lighting and more.
A small loan goes a long way. And comes back to you.
There are seven steps to Milaap's methodology. It starts with identifying what we call a 'dignified life challenge' - one that recognizes the lack of basic needs for any Indian citizen or community. After identifying the challenge, we design customized programs and raise capital for the loans. Then, the loans are disbursed, monitored and any support required is provided. Once the borrower begins to repay the loan, the lender gets credited with Milaap credits. The seventh and final step is what gives your loans momentum - the recycle step. You, the lender can decide to re-lend the money and thus make the same amount help multiple families over time.
Milaap and its Field Partners Identify the Challenge
India has over 150 million households with no access to essentials like water, sanitation, healthcare, education and energy. Small scale artisans are forced to shut shop prematurely because of lack of access to market links. These needs can be met through access to low cost capital, affordable and relevant products, services and market links. Milaap partners with established organizations that have a strong presence at the grass roots and a deep understanding of the audience to identify key challenges and communities that face these challenges.
Milaap and its Field Partners Design Customized Credit Programs
Low cost loans are known to be repaid comfortably if they are used for services that improve the living conditions of the poor, and if it aids them in the pursuit of a better life.
Therefore, Milaap and its field partners design customized loan programs, not only for income generation but also for access to basic facilities, taking into consideration:
- 1. The borrower's ability to pay - to ascertain the interest rates on a loan; from 12 to 18%, which is half the existing interest rate offered.
- 2. The regularity in cash flow - to develop the monthly repayment schedule that can spread from 12 to 24 months, depending on the need.
3. The access to market links - to provide borrowers with the connections and safety nets essential for effectiveness.
For example: Our field partner will ensure that a rural artisan, who has taken a loan to start an enterprise receives advice and support in skill enhancement, sourcing and buying of machinery and raw material. Not only that, there is also a guaranteed purchase of finished products. Thereby, an efficient supply chain with reduced risks for the artisan is created too.
Milaap Shares Loan Requests and Raises Capital
Milaap Shares Loan Requests and Raises Capital
Milaap.org shares requirements, backgrounds and photos of all borrowers for 30 days in the following five areas of focus:
- 2. Education & Vocational Training
- 3. Healthcare
- 4. Sustainable Farming
- 5. Water & Sanitation
Our online listing of borrower profiles enables you, the lender, to select the cause and the borrower of your choice and give a loan of minimum USD 50 or Rs 1000 or the amount required to complete a loan.
Field Partners Disburse Loans
Every month, Milaap sends the total loan collected to its various field partners who are responsible for the relevant loans. The field partners then check the loans pledged to a borrower and disburse the respective loan amount. At times when a borrower has an immediate need, the loans are funded in advance by the field partner. They are then reimbursed once the borrower's loan receives support on Milaap.
Field Partners and Milaap Monitor and Support Loan Usage
Throughout the loan cycle, our field partners regularly monitor the progress of the borrowers. This monitoring enables us to ensure effective use of the loan amount. It also helps us intervene with additional support if required and where possible.
Our field partners also conduct social impact assessments to study if the loans provided help borrowers rise above the poverty index and to understand ways in which we can improve the quality of the outcome. The data we gather allows us to keep you informed about the use and success of your loans, thereby involving you at all stages of the loan cycle.
Field Partners Collect Repayments and Milaap Returns the Loans
The field partners collect repayments, including interest from the borrowers every month. The interest of 12 to 18% is charged to cover operational costs for Milaap and our field partners.
Milaap makes monthly deposits of the repaid loan instalments into your (the lender's) Milaap account. At the end of the loan cycle you can choose to withdraw the repaid loan amount or decide to relend it to another borrower on Milaap
You, the lender, recycle the loan amount
If you decide to use your repaid loan (existing credits) to lend to another borrower on Milaap, you are enabling the same amount of money to help multiple people improve their standard of living.
Through re-lending, your small loan goes a long way and gathers impact to create dignified lives.
To re-lend your credit, simply choose a borrower and make a loan. This will not involve additional transaction fees.
Here's what one of our lenders who re-lent his credits had to say:
" I completed a loan just using my iphone. No payment was required as I had credits. So it took barely a minute to go from my Facebook account to a completed loan! "