Repayment frequency: Varies from case to case. And if any borrower defaults, we are blamed." New Life has since given up on banks and works entirely through Micrograam.Īverage ticket size of the loans Rs 10,000 Says Peter Rex Charly of New Life, a Tamil Nadu based NGO which, among other services, helps villagers secure loans up to a maximum of Rs 15,000 to set up self-sustaining businesses: "Banks want references from us but they will not bear even our operating costs. Banks were always chary of providing such loans - and remain so. The timing has helped too, since the microcredit sector is currently in crisis, and loans for the poor have dried up. Micrograam's initiative has been a hit: in just 16 months it has found 270 investors and helped disburse loans of around Rs 87 lakh to 563 borrowers. Micrograam, set up in February 2010 by Rangan Varadan, a former head of banking and capital market verticals at Infosys, has devised an innovative means of extending credit to the poor by creating a portal that brings investors and borrowers together, allowing them to work out their own deals. It works closely with non-governmental organisations but is, in fact, a private company. It enables poor villagers to get credit, but it is not a microfinance institution.
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