In our lives whenever there is a financial emergency we have the privilege of access to a whole gamut of banking and financial services. We could walk into a bank avail a loan , use our credit cards. But there is a vast majority in our country who don’t even have access to a bank account.

That is where ‘Microcredit’ comes into play. Microcredit refers to providing small loans to low income households – mostly to start a micro-enterprise like livestock rearing, tailoring, grocery store etc. These income generating activities enable poor households to become self-reliant and get out of the vicious circle of poverty.

One can simply register on rangde.org to become a social investor. Choose borrowers to make a social investment of as little as Rs. 100. At the end of the repayment schedule, the investor receives a 2% interest on the investment.

Here’s an interview with Smita Ram, Co-Founder & COO , Rang De:

What was the whole idea behind starting Rang De?

The idea behind starting Rang De was to create a sustainable initiative that will address a problem at its roots. Prior to starting Rang De, we were dabbling with several ideas relating to child labor, domestic help, media etc.

But soon we realized that most of these problems had poverty as its root cause and unless we address poverty, the rest will continue to exist. While we were researching these problems, Mr. Mohammed Yunus won the Nobel Prize in December 2006. That’s how we were introduced to the concept of micro-credit. Something that intrigued us was the interest rates that the borrower paid and how little people like us knew about the concept.

Thus Rang De was born as an initiative that facilitates small loans (micro-credit) for Indians that do not have access to credit. You can lend from Rs. 100 onwards on www.rangde.org to entrepreneurs identified by our partners across India. Join us to make poverty history in India!

What kind of hurdles you had to face during setting up the organization?

There were plenty of challenges right from registering the entity, to attracting talent to getting funds. We continue to face similar and other challenges but that is what makes working for Rang De enjoyable.

Rang De has a fabulous repayment rate, how do you guys achieve that?

We follow a model that is similar to the one propagated by Mr. Mohammed Yunus. We lend money usually to individuals in groups.The group could be a self help group or a joint liability group. In both cases, the group members vet each other and the group leader signs as a guarantor. The group also agrees to pitching in with the repayments if one of them fails to repay. This is the main reason for the repayment rate. Apart from this, we have a criteria for the selection of the borrowers which our field partners follow.

What has been the response of the social investors?

Our social investor base is growing slowly but steadily. We have a little more than 1000 social investors and in some sense, we are a close-knit community. Those who invested their money first have also now begun to invest their time to make Rang De more efficient.

In how many states does the organization have its presence?

We currently have a presence in 10 states – Karnataka, Andhra Pradesh, Tamil Nadu, Orissa, Kerala, Rajasthan, Uttar Pradesh,Maharashtra, Madhya Pradesh,West Bengal.

Although the impact is quite evident, could you tell us some anecdotes of the social impact of Rang De, on individuals and the community in general?

Women entrepreneurs we are reaching out to in Orissa are getting access to loans for the first time. Their loan size is as small as Rs.1000. They are able to borrow money for the first time because it is affordable.

Any plans of making it a for-profit organization?

No. We do not plan to make it a for-profit organization.

How do you plan to take it forward? Where do you see it 5 years down the line?

We would like to be able to reach out to people across all states in India and go deeper into the territories where we have started to work. We would also like to provide a wide range of social investing options to the investors and make social investing a norm.

The Better India team wishes Rang De all the best of their mission to create a macro impact through micro credit.

Contact Details
Do visit www.rangde.org for more info
Twitter: http://twitter.com/rangde
Facebook: http://apps.facebook.com/causes/127485?m=96aaaf39/

Village Services Trust (VST) is an NGO based in Tamil Nadu with a mission to facilitate rural development through community development projects. Their vision is to “serve the basic needs and priorities of the socially, educationally and economically backward sections of women, foster rehabilitation and overall development of the physically challenged and provide utmost care and support for child welfare”.

VST’s main focus areas are women’s empowerment and child welfare and they currently operate in the Dindigul and Kanyakumari districts of Tamil Nadu. Many of their initiatives, targeting the areas of education, health and overall welfare, are implemented in tandem with the state government and other NGOs operating in these areas.

VST has enabled the formation of women’s group in village to campaign for better representation and involvement in key decision making processes. They also have implemented a Grameen Bank model micro credit system that is supported by Self Help Groups (SHGs). These SHGs have also been successful in building community network within these societies for women and the marginalised.

VST also runs health centers to provide medical, maternity consultations and counselling. In collaboration with the Aravind hospital, Madurai, VST has organized eye and dental camps. They are also active in spreading awareness about personal hygiene, HIV, STDs, immunization and family planning.

The other major focus for VST is child welfare with emphasis on rehabilitation of abandoned and abused children. VST rescues at-risk children and provides them shelter, education, vocational training and, more importantly, an opportunity to lead a normal life again. The child rehabilitation project has been operational since 1999 at their Dindigul center. It is estimated that there are 3500 children living on the streets of Dindigul.

Many of the abandoned or run-away children seek work in factories and shops to earn a living. Their predicament makes them easy victims of sexual, labor and/or drug abuse. VST seeks to help these children by help strengthen family structure to minimize run-aways, scouting for and reaching out to the abandoned as early as possible and shelter them before abuse. They also rescue abused children and provide a safe shelter where they can grow in a nurturing environment.

At present, there at 83 children being cared for at the shelter. It takes almost Rs. 1.5 Lakhs or $3,000 a month to sustain this project, to provide for children’s basic needs ie food, clothing, health care, education etc.

The child rehabilitation project currently has a crisis of funds. VST is seeking donations to help them continue operations and provide for these children.

Below is the link to their website which is enabled with a Paypal system for donations. Your generosity will be greatly appreciated by VST and the children. You can also choose to sponsor a child at the shelter.

Village Services Trust

Please do visit the website to read more about the work that they are doing on the ground.

You can also contact them at

The Village Service Trust

Michaelpalayam – 624215
Nilakottai Taluk
Dindigul District
Tamil Nadu

Phone: +91 (451) 6531 997
Mobile: +91 (0) 995 286 4440 or +91 (0) 984 212 4729
Fax: +91 (451) 242 0430 or +91 (451) 244 0062

Email: thevst[at]rediffmail[dot]com

Twenty-five year old Rehana has faced several hardships in her short life thus far. As a nineteen year old, she had to take up the mantle of the household, when her father, a salesman in a local cycle shop, fell seriously ill. The eldest of 4 unmarried sisters, she started stitching clothes for her neighbours to earn a living. Today, she runs a successful clothes boutique and a general store in her village Chandwak, near Jaunpur. Rehana is also the National Winner (North) in the recently concluded Citi Micro Entrepreneur Awards.

Rehana was aided in her progress by the NGO, Nazir Art Seva Samiti, which helped her in getting an initial loan and guidance for setting up a tailoring unit. While providing her with marketing opportunities to expand her reach, the NGO also helped her obtain a second seed capital when Rehana decided to set up a general store in her house. The support provided by the NGO and Rehana’s own determination has changed her life as well as improved lives of others around her.

Presently, Rehana has 5 employees, 3 at her tailoring unit and 2 at the store. She has borne educational expenses for some who have started their own enterprise. She also provides free training to needy women at her boutique and later on engages some of them in the work.

The work done by these NGOs in uplifting the lot of the underprivileged and affording them entrepreneurship opportunities is highly commendable. This is one of the several stories of successful micro entrepreneurs who have been helped by local NGOs to achieve social and economic empowerment. Click here to read the other inspiring tales of struggle and success.

Link Courtesy: Arvind Singh. Thanks a ton!
Image Courtesy: Citi Micro Entrepreneur Awards Brochure