Milaap Social Ventures
Online platform to make microloans to India’s working poor
Millions of people in India live without access to clean drinking water, toilets, and electricity. Loans for these products come at high interest rates because banks rarely serve this sector. Their only alternative is to approach local moneylenders or microfinance institutions (MFIs), where the interest rates are exorbitantly high because they must first take their own loans from banks.
At Milaap, the need for MFIs to borrow from banks is eliminated by sourcing funds from individuals all over the world. This way the end borrowers are assured low interest rates. Besides basic amenities, Milaap provides loans to those looking to set up small businesses or seeking a job-oriented vocational training. Once the borrowers repay their loans, lenders can choose to recycle their loans and help multiple families with the same amount.
Milaap hopes to provide access to basic amenities, education, livelihood support for at least 20,000 families in the next couple of years.
Milaap is an online microlending platform which enables anyone around the world to lend money to the working poor in India through the website milaap.org. Milaap was founded in 2010 by a team of young and passionate entrepreneurs from premier institutions in India and Singapore. Milaap envisions a world where the poor are valued as dignified consumers, suppliers, and producers as opposed to mere borrowers. The loans aim to provide the poor with access to basic amenities including clean drinking water, toilets, education, renewable energy as well as income-generation opportunities. As of December 2011, Milaap has raised USD $200,000 for borrowers in various parts of India with 100% repayment rate. Milaap is based in Bangalore, India.