Rang De

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Rang De Official Logo (Small).png
Founded January,2008
Area served
Products Low cost micro- credit for Businesses and Education
Method Microcredit
Key people
Ramakrishna NK, Smita Ram
Slogan "Share the colours of joy"
Website http://www.rangde.org

Rang De is a non-profit organisation [2] that allows individuals to lend money to Indians from low income households that require a small amount of money (microloans) to start or grow a business. Money can be lent in the form of a social investment through Rang De's on line portal.[3] Rang De disburses loans to its borrowers through its field partners (usually NGOs) across India. Social investments will be repaid with interest at the end of a loan tenure (typically one or two years).

Rang De is an attempt to bring together the India that is rapidly progressing economically and the India that has been left out and needs attention and is conveyed in its tag line "share the colours of joy". Rang De’s mission is to make microcredit [4] accessible to every low income household by lowering loan interest rates through innovative means.[5] The USP of Rang De is that it offers loans at 10% flat which is one of the lowest in the microfinance world.

Origins of Rang De[edit]

The idea of Rang De was formulated in December 2006 while the founders Ramakrishna NK and Smita Ram were working in the United Kingdom. They wanted to do something social in India in fields such as child labor, special children and farmer crisis. They realized that the root cause of many problems in India was poverty .[6] As there was no on line micro-lending platform in India at the time, they chose to go on with Rang De with the main objective being to create a model that could be replicated and launched at a national level.

One of their first decisions was registering the domain name. Following that, they found Niyati Technologies as their creative partner came as a blessing. Niyati Technologies gave them a discount of 50 per cent as they were working on a non-profit cause.

The founders came to the Microfinance India Summit in October 2007. They got offers of equity from some of the participants at the conference and investors started showing interest.[7]

The ICICI Foundation for inclusive growth through CSO partners have agreed to incubate Rang De in early 2008. CSO Partners is a non-profit organization that is committed to strengthening civil society organizations by mobilizing contributions -both human and financial - and providing appropriate support services through a large network of ‘partners’ specialized in the area of donor service, social investment services, financial management, governance, technology, advocacy and communications.[8]

How RangDe.Org works[edit]

Funding and revenue model[edit]

Rang De is funded by CSO (Civil Society Organizations) Partners initiative, who is primarily working towards building a vibrant society.[9]

Rang De looks to sustain itself by charging its borrowers a nominal fee of 1% on all transactions. This is to help Rang De become sustainable and cover costs such as the payment gateway fees and server charges. 0.5% is kept aside as a contingency fund to partially cover loans defaulted due to genuine reasons.[10]

The loan process[edit]

Rang De receives loan applications from borrowers through its field partners.

Borrower applications are processed by the team and put on line on Rang De's portal RangDe.Org. Rang De raises investments through RangDe.Org and ensures that loans are disbursed within 30 days of the receipt of application.[11]

Through RangDe.Org users can search for a borrower they want to lend money to (make a social investment towards). Borrowers can be found by state or by the activity for which they need a loan for. Alternatively, if the user does not have time to select a borrower or wants to help fulfill the most urgent loan requirement, they can make a quick investment.[12] Social investments can be made in multiples of Rs. 100.

During the investment process, social investors can chose to support Rang De by donating money or by contributing the interest earned on their social investment to Rang De.[13]

Rang De disburses loans to the borrowers through its field partners. When social investments do not fulfill a loan requirement, Rang De gives the remaining amount from its corpus fund.[14] All of the social investors that contributed to a loan are informed of disbursals of loans towards which they contributed to. The social investor will be informed of the first disbursal and this will act as a receipt of the social investment.[15]

Borrowers repay loans on a periodically (weekly, monthly or quarterly) basis. Social investors will be informed when the first repayment is made on their behalf. They can view the remaining repayments being made on their behalf on their Rang De profile. The repayments being made to the social investor is known as Rang De credit. Social investors can chose to invest their Rang De credit towards a borrower in need or they can withdraw it.[16]

Once the loan tenure is over, the social investor will have gotten their full loan amount back along with a 3.5% annual percentage yield interest on the same (provided that the borrower doesn't default on the loan). The interested is calculated from the day the loan is disbursed.[17]

Rang De loans[edit]

Rang De Microcredit[edit]

Rang De Microcredit is a low cost, easy to access and borrower friendly credit meant for low income households. It is designed to match the business needs of these groups with the ability of individuals (social investors) to lend small sums of money and make a social impact. Rang De ensures that any income generation loan has an interest rate of no higher than 10% flat p.a.[18]

The breakup of the 8.5% interest on any income-generation loan is as follows:

  • 5.5% goes to the field partner
  • 2% goes to the social investor as a nominal financial return along with their phenomenal social return.
  • 2% goes to Rang De to cover its operations.
  • 0.5% goes to a contingency fund that is maintained by Rang De to repay social investors in case a borrower dies or defaults on a loan.

Rang De Education[edit]

Rang De Education loans have been designed to address educational needs of low income groups. Rang De's current initiative aims to fund the financial requirement at beginning of the academic year. Rang De has observed people going to moneylenders in the beginning of an academic year and has implemented an education loan program to help those who face the same crunch. The System works as follows:

  • Parents provide Rang De with the loan amount.
  • Rang De provides them education vouchers.
  • Vouchers are to be presented at the school to gain admission for the child at the school.

Rang De has gotten a two month credit period from schools as Rang De needs time to raise funds for all the borrowers.

Pictures of children are deliberately not uploaded on RangDe.Org due to privacy issues. Rang De has a signed consent from the parents for their photographs to be put up on the site.

Field partners have methods in place to take adequate care to check the credentials of the borrowers as well as their children. Only children who have done well in their previous academic year will be considered for this loan.

Since education is not an income generation activity, Rang De social investors do not get a return on investment. However, the principal will be returned during the loan tenure. Field partners would get 4% flat towards their operational cost and Rang De would charge 1% to cover its transaction costs.[19]

Rang De's Field Partners[20][edit]

Name Of Field Partner Location State Founded on
CBMD Nagpur Maharashtra 2006
Samagra Gram Vikas Sanstha (Sagras) Pusad, Yavatmal Maharashtra 1988
Association for Sustainable Community Development(ASSCOD) Thiruvannamalai Tamil Nadu 1994
New Life Tiruchirapalli Tamil Nadu 1993
Hope IRDS Kurnool Andhra Pradesh
Hope Foundation Palakkad Kerala
Pragati Puri Orissa 1989
Gram Utthan Kendrapara Orissa 1990
Karuna Trust BR Hills Karnataka 1986
Grameena Mahila Vividodesha Soudharada Sahahari Niyamit(GMASS) Bidar Karnataka 1994
Udyogini Bikaner Rajasthan 1992
Bhartiya Manav Samaj Kalyan Sanstha (BMSKSS) Deoria Uttar Pradesh
darabar-sahitya-sansad (DSS) Khurda Orissa
Jeevan Jyoti Kala Kendra(JJKK) Muzaffarpur Bihar
Center for Development Orientation and Training (CDOT) Nalanda Bihar

Rang De volunteers[edit]

A Rang De Chapter consists of a group of volunteers living in a city (in India or abroad) that would like to do more than making a social investment to fulfill Rang De's vision of making affordable micro-credit in India a reality. Rang De chapters carry our promotional, networking and information disseminating activities on Rang De’s behalf in their respective regions.[21]

Anybody can join a Rang De Chapter provided they are residents of the city the Rang De Chapter is in.[22] If there is no Rang De Chapter in a particular city and somebody would like to create one, they can follow the instructions on the Rang De Chapter Rang De Chapter Portal.

Rang De's Impact[edit]

As of 16th Mar, 2015

Loans Disbursed Social Investments Raised Social Investors Social Investments Repaid Repayment Rate Outstanding Portfolio
34,561 281.7 Million Rupees 7,183 210.2 Million Rupees 99.77% 71.5 Million Rupees

See also[edit]


  1. ^ Goyal, Anuradha (2014). The Mouse Charmers - Digital Pioneers of India, Random House India. p. 236. ISBN 978 81 8400 492 2.
  2. ^ "India's first micro lending site launched". CNBC Money Control. Dec 4, 2008. 
  3. ^ "Rang De (works to make poverty a history)". Bangalorean.co.in. Bangalorean. Retrieved 29 April 2013. 
  4. ^ "When giving is cool". DNA. Dec 27, 2009. 
  5. ^ "What's Rang De on". RangDe.Org. 
  6. ^ Rang De - share the colors of Joy!, on Water, No Ice
  7. ^ Reaching out to the needy, on Ergo
  8. ^ Strategic Partners, on RangDe.Org
  9. ^ "Rang De: Share the colours of Joy". My Bangalore. 
  10. ^ "What's In it For Rang De?". RangDe.Org FAQ. 
  11. ^ What is the Invest by date? - RangDe.Org FAQ
  12. ^ As a social investor, how will I give the money? - RangDe.Org FAQ
  13. ^ Can I forego the interest rate? - RangDe.Org FAQ
  14. ^ If a borrower is partly funded before the "Invest by Date." Will the borrower get the partial amount that was raised or nothing at all? - RangDe.Org FAQ
  15. ^ Will the social investor get a receipt for the payment? - RangDe.Org FAQ
  16. ^ What is Rang De Credit? - RangDe.Org FAQ
  17. ^ What is my return on my social investment? - RangDe.Org FAQ
  18. ^ What is Rang De Microcredit - RangDe.Org
  19. ^ Rang De Education - RangDe.Org
  20. ^ Current Partners, - RangDe.Org
  21. ^ Rang De Chapters Homepage - Rang De Chapters
  22. ^ Joining or Creating a Rang De Chapter - Rang De Chapters Portal

Partner in web Designing company in India Rang de

External links[edit]

Rang De Websites[edit]

Rang De on social media channels[edit]

Media on Rang De[edit]