Company Name:MicroGraam

Location:Bangalore

SectorFinance

Link: http://www.micrograam.com

MicroGraam

Meera Sawkar - Marketing Executive  

MicroGraam is a peer-to-peer investment platform that enables low-income borrowers to avail affordable loans from social investors. 

Problem: MicroGraam works with underserved segments of the population in rural areas of India. Over 80% of our borrowers are first time loan recipients who never had access to formal financial services. The problems for our borrowers are that they have unstable income and low or no access to affordable financing. Social investors who are interested in making an impact investment instead of philanthropic donation find it difficult to identify transparent and trustworthy channels that reach out to populations in need. 

Solution: MicroGraam has created a lending platform that creates an ideal lending environment for both borrowers and lenders. The borrowers pay less than 16.5% per annum, investors can choose their return between 0-8%, and we guarantee the principle investment will be repaid. We are able to guarantee the principle through our first and second loss guarantee fund. MicroGraam borrowers use their loans for education, agricultural inputs, livestock investments, and micro-enterprises. Lastly, we have brought innovation to traditional microfinance by providing flexible repayment schedules students, balloon for farmers, and a micro-equity funding model called MicroVentures.

MicroGraam has created a lending platform that creates an ideal lending environment for both borrowers and lenders. The borrowers pay less than 16.5% per annum, investors can choose their return between 0-8%, and we guarantee the principle investment will be repaid. We are able to guarantee the principle through our first and second loss guarantee fund. MicroGraam borrowers use their loans for education, agricultural inputs, livestock investments, and micro-enterprises. Lastly, we have brought innovation to traditional microfinance by providing flexible repayment schedules students, balloon repayments for farmers, and a micro-equity funding model called MicroVentures.

Impact: We have lent to 1,900 borrowers in rural Karnataka, Tamil Nadu, West Bengal, Assam, and Jharkhand. We measure social impact that we have on our borrowers by frequently visiting the NGO’s/borrower for interviews and case studies. We compare their cash flow prior to receiving a MicroGraam loan to afterwards. On average borrower report that their income as individuals has double after beginning to earn an income from the use of their micro-enterprise. A case study is written for each borrower visited and they are asked about 30 questions including but not limited to prior loans, family income/other businesses, and challenges with repayment.

Investment Needed: 1 Crore