By Rakesh Khemani, Social Investor, Bangalore

I believe in social investing as a means to knock down poverty, to help people help their families, to support the enterprising with a relatively affordable resource, to help those who believe in a dignified existence and are willing to work hard for it, to do my bit for the society and derive the vast sense of satisfaction and purpose; the reasons are equal to the number of individuals who believe in it.

However, beyond and in addition to the altruistic objectives for social investing, can it be viewed using the pragmatic lens of sound financial planning?

Let’s explore the idea with an illustration. A is a 30 year old who makes a social investment of Rs. 2000 per month with a distribution of Rs. 200 each to 10 rural entrepreneurs. At the end of the first year, she would have made a social investment of Rs. 24000 and impacted 120 families. It is assumed that the repayment is 100% at 2% interest annually.

In the second year, she continues investing Rs. 2000 per month and also reinvests (from the repayments) Rs. 2000 per month. Let’s also assume that the interest of Rs. 480 for the social investment for the first year is reinvested in the second year.

Thus at the end of second year, A would have invested Rs. 48480 thus impacting 362 (120+242) families. Let’s assume that A continues the method as described above for 27 years and receives all the repayments back in the 28^th year without making any new investments or reinvestments in the 28^th year.

At the age of 58, A would have received back a corpus of Rs 848264 as depicted in row 1 of the table below:

As shown above, assuming an interest rate of 8%, an MIP would provide A with a pension of Rs. 5655 per month from her 59^th year onwards!

Going by the original objective, A has positively supported 54292 families towards their dreams. A could receive a pension of Rs. 14138 per month with a monthly social investment of Rs. 5000.

So we see, social objectives and personal objectives need not be mutually exclusive.

By Sukhdev Gupta, Rang De Social Investor

I was always inclined towards doing something in the social sector. After retiring from Govt. service in 1997 I settled in Gurgaon where I worked as a consultant for nearly four years.

In 2003, I came in contact with GOONJ, and got actively involved, helping it expand its reach in Gurgaon. In 2007, I also joined Khushboo Welfare Society, an NGO for mentally and multiple challenged children.

About a year back, I heard about Rang De from my brother. I studied the model closely and was fascinated by it. Its governing board consists of eminent professionals who inspire confidence.

Micro finance has always fascinated me as I believe it gives opportunities to poor people to generate some income and improve their standard of living. It also imparts dignity to the beneficiaries as they are not receiving any charity rather helping themselves by dint of enterprise and hard work.

Rang De gives two choices to the investor to choose the beneficiaries. One can choose oneself from the list on its site or leave it to Rang De. I have tried both the alternatives and I am satisfied with both the selections. The interest being charged is very reasonable and just covers the expenditure on operations. I can help two families to increase their income for one year by just giving Rs.650, the interest on Rs.10, 000.00 for a year.

What I also like about Rang De is that it informs the social investor at regular intervals about the progress regarding the installments being repaid by the beneficiaries. The social investor can also re-invest the money paid back by the beneficiaries.

The feedback system is also very good. The social investor can visit the beneficiary or talk to her/him on telephone. I myself spoke with two women beneficiaries from Orissa. In fact one of my Oriya speaking friend did all the talking on my behalf. One of the beneficiaries asked us to visit her in the village and see for our self how she is using the money. I was quite impressed.

The stories of beneficiaries are very heart warming and educative. I was always skeptical as to how a small loan of Rs.5000.00 can generate any worthwhile income. Most of my friends involved in philanthropy were also skeptical. But my experience with Rang De has taught me that our rural folk are very enterprising and given an opportunity can do wonders.

I am greatly excited by the fact that sitting in Gurgaon I can help the needy in distant villages of this vast country by investing small sums. On the whole my experience has been very educative and satisfying. I think this is one platform where you can help the less fortunate in a most effective manner. I will definitely recommend it to my friends.

By Ishi Sodhi, Rang De Social Investor

I was born and raised in India.  Hence, poverty was never a myth for me.  It was a harsh reality that (fortunately) did not affect me directly.  I had my own set of problems to deal with which seemed grave then. Some of these included getting into the best school, obtaining highest marks in my class, celebrating my birthday every year of course with a bang.  Getting a good education felt like my birth right.  Having access to meals four times a day was not an issue for me.  Yes, I am your upper middle class girl who had her own set of problems.  The obvious question is that why would I be interested in an organization like Rang De?

For me, it was graduating from college and getting into the ‘real world’.  I did not have the aptitude to get into IIT and join Microsoft or Google as an Engineer with an astounding figure salary.  But, I chose my own path.

It was close to my senior year in college and I still had not found ‘my passion’.  I was studying International Relations and knew only one thing. I wanted to work with people from a diverse background (as cliché as it may sound).  Again, destiny was in my favor and I found the love of my life (back then)-immigration.

This is how my social investment began.  I got involved in helping and interacting with low-income households to obtain U.S. citizenship so they could earn a living in America.  This was my volunteer work at a non-profit organization that reaped profits for me once I landed a job with a money making law firm. I was fresh out of college and there was no looking back.  I started working like a factory that produced more and more green cards which in turn produced more bonuses for me.  I lost in touch with reality and did not know where to stop.  My goals now included getting a raise and working hard for the senior position in my team.

Well, life had something different in store for me as I quit this cushy job after four years.  Again, my love for immigration did not end here and I started my journey again working at a more sophisticated law practice.  Yes, I was making money and did not have to think if I could afford my next meal.  It did not matter to me that I did not own a car or even a house. I did not care that I sat in traffic for three hours every day to work.  I still considered myself living a comfortable life.

However, even after having all the luxuries of life, the passion was gone.  As if, just making money was not enough anymore.  I started volunteering again and started to teach English to girls from Burma.  Every time I walked into the classroom, it made me realize how blessed I was to be living my life.

Then I was introduced to Rang De through a friend.  Honestly, Rang De is a recent discovery for me.  But, it should not matter how new I am to this unique online portal.  You should be more interested in knowing what it did to me in these past few weeks.

This is a secret that I have the courage to share and I am sure that you are hiding that secret inside too.  I was a semi-shopaholic.  I did not care for big brands but I did care for the latest trends in an affordable price.  I enjoyed buying new clothes every weekend as the market changed trends on me that fast.  Every weekend, there was a new color and style in town.  From flare jeans to skinny jeans, from sexy black to bold orange, I wanted to have it all.  And of course, I was spending enough that I could alone take care of a lot of the loans the borrowers from Rang De required.

But, I am happy to share with you that my shopping spree every weekend is now history just like Rang De’s initiative to make poverty history. I now use the money that I earlier spent on buying clothes to lend to the borrowers.  And I am still happy (rather grateful).

Since I discovered Rang De, I rediscovered a fact that even a small amount can go a long way.  In other words, a little monetary push could change someone’s life.  The micro-credit loan that the social investors would lend is not even close to how much cash most of us drop in a day on buying a single strapless dress or pair of stilettos.  Buying a dress for one evening may not take you very far but if you are able to control the urge and lend that money, it could definitely change someone’s life who is in more need of that money than you are of a new dress or a meal at a fancy restaurant.

If you are able to grasp the concept of Rang De, you will come to a realization that this organization is not asking for a donation.  In fact, it is giving you the opportunity to help someone in dire need with a very high possibility of making you earn an interest of 2% through this monetary investment.

Now honestly, please tell me who does that?  So, I urge you today to put your hand in your wallet and take that hundred rupees note that will change someone’s life forever and maybe yours!

By Chetan Agrawal, Rang De Volunteer

It had been three years since I celebrated Diwali in India. So when I got the chance this year, I decided to make it one of the memorable events for rest of my life. I chose to go for a ‘Rang De Field Trip’.

In the past three years I have spoken to over 300 people, introducing them to Rang De but each time I talked about it, people used to ask whether it really worked, are people really getting benefit out of this venture, how the field partner worked etc. These questions are often faced when anyone tries to introduce Rang De to an individual. The answer lied in just one visit to the place where this whole story unfolds.

This field trip answered all my questions and I hope it will help me to jot down the lines to give exact answers from field. During this visit I visited 25 of our Rang De borrowers from Jhabua, MP. How happy these people were when I told them that I am here to make sure that nothing wrong is happening with them on the name of these microloans. We talked like we have known each other for a long time. Though most of them were busy when I reached there as they had a ‘HAAT’ on coming Sunday. ‘HAAT’ is the place where these people sell their products (using Rang De Loans) and get sure earnings but they gave me their precious time with no interest! All of these borrowers were the brave ladies who run their family with their hard work. They work all day at market/fields/home to make sure their children get a better place in the society.

There were 5-6 sweepers who took Rang De loan to grow their business of basket making. Two of them there had taken the loan of Rs 5000(which many of us have spent on Diwali fireworks) to make beautiful fish nets. I met borrowers from Muslim Area where ladies are doing great work of tailoring along with training new girls. I got the chance to meet farmers in their fields and met with people from different work and culture but with same target to get better place in the society.

If I write about this field trip in details, it would take a form of a book. I would like to dedicate it to volunteers who have joined Rang De make the difference in society. I would like to say that, we are still giving just a bit of our capacity. Guys, infuse all your energy to make it a success. People are looking towards you for so many of the solutions of their day-to-day lives. Give them one. Tell them about Rang De.

By Ankur Singh, Rang De Bangalore Chapter

‘Poverty is a myth, it is  just the imbalance of distribution of wealth’. Some people are doing everything  they can to bring about that balance so that one day we can realize that poverty was a myth.

Ever wonder about the idea of having a ‘Bollywood style’ entertainment and combining it with a cause. Few people made it happen on 15th October 2011 when a special screening of ‘Mod’ a film by Nagesh Kukunoor was organised in Bangalore.

To quote Nagesh Kukunoor, who so graciously attended the event, “I support Rang De deeply and the cause they fighting for”. It was an implicit appeal to people to do their bit for this cause. Travelling all the way from Mumbai despite his busy promotion schedule , it reflected his concern and commitment to the cause and organization. Isn’t it time for us  to support this fight ?

Rang De team and volunteers did all it took to make the event. What more to ask from an evening which meant having a fun filled entertainment with the responsibility of creating awareness about  a cause. It was  the best of both worlds.

At times  I hear people saying, social work is not their cup of tea or postpone it for the future. I have just one question to them, if not now then when?

It’s high time we  join and spread the colours of joy  true to the name Rang De!

Rang De Gift Cards are a great way to celebrate any occasion. When you gift a card to your friends or family on their special day you also empower a low income entrepreneur to take one more step towards his/her dreams. The gift card will let the recipient experience the power of ‘social investment’ by redeeming the card and funding a low income entrepreneur of their choice.

Now is your chance to create one! Share your designs for New Year 2012. If selected your designs will be a part of our Gift Card portfolio with due photo credit.

And yes, there are prizes to be won. The best design will get a Rang De T-shirt and a surprise gift!

Below are the contest rules : -

• Designs should be of following specification: 600px: 330-350 px (postcard format)
• Submit your designs to support@rangde.org with subject – Gift Card Design Contest Entry’
• Last date of submission is 12th November 2011.
• Winners will be announced on 14th November 2011 on Facebook.
• Rang De will have the right to use the entries submitted with due photo-credit at any point in future.

It’s time to get creative and share your wonderful designs for New Year 2012.

By Smita Ram, Rang De Team

Last Diwali, I had a chance to embark on a road trip from Chennai to Hyderabad.  On this slightly longish road trip, we ended up taking the wrong route which made us cut through several villages. This was Diwali day and when I gazed out of the window to see how people were celebrating the festival, it seemed to me like it was just another day for them.

No fireworks, no diyas, no new clothes, no sweets or a feast seemed to be on the cards. It made me feel ashamed and a tad guilty as here I was trying to be with family desperately to ‘celebrate’ the festival and alongside me were several thousands of people who could not  afford to care much about the festival.

This time too, not long before Diwali, I was on a field trip to a community that lives a few kms from Jungle Lodges Resort alongside the river Kabini. Holiday revellers go all the way up to Jungle Lodges for a vacation not knowing that a few kilometres down the road there are people who are yet to experience development of any sort.

Electricity is still unheard of here. The annual income of  an individual ranges from Rs. 7,000 to Rs. 10,000.Yes, we are talking annual numbers here.  The only occupation, for most people, at this point seems to be crossing the river Kabini to get employment as coolie workers.

The first batch of applications are almost ready for Rang De Loans and we continue to work with our partner organisation to create alternative sources of income for the community.

As we began our journey back to Bangalore, I began to wonder,  perhaps even this year, Diwali would be just another day for this community.

Hopefully the community will have something to smile about before next Diwali!

Rang De was launched on 26th January, 2008 with an aim to provide Indians all over the world a chance to help their rural counterparts by lending amount as less as Rs.100 to help set up or expand their small businesses. Going by the same spirit, we have done everything we could to facilitate the process for our NRIs. So a ‘Social Investment’ through Rang De now takes less than five minutes!

Below are certain points you will need to know before you make an investment:

• NRO / INDIAN bank account – You can make/redeem your investment using your NRO or any INDIAN bank account.

• NRE Accounts – While you can also make investments using your NRE accounts,redemption is not possible through the same.

• No Foreign Transaction Fees! We absorb the foreign transaction fee incurred.

By following the steps below you can make your payment in three simple clicks!

I .First, to select your nationality, click on ‘I am an Indian National living outside India (Non Resident Indian)‘

Read more »

By Rang De Operations Team

Rang De’s field partners who are based in Orissa have made an appeal for financial support to aid their relief work.  Many of the communities have been severely affected by the flood.  Here is a blurb shared by one of our field partners about the situation.

Homes submerged in water

“More than 65,000 mud-walled thatched houses have collapsed in the Kendrapara district. Particularly, the people of  Rajkanika and Aul blocks of kendrapara district have been most affected. Within two weeks of second wave flood more than 31,000 mud-walled  thatched houses have collapsed, 3021 hectors of cropped area submerged, 786 livestocks washed away with a loss of 47 human lives.

It is the need of the hour to reach out to the affected communities and stand in solidarity. A lot of voluntary effort and financial support is needed in this direction for  restoration of their agriculture, land, livestocks, health, education  and livelihoods of the flood affected communities in Kendrapara districts.

If you would like to contribute financially to the relief work, you can do so on this page.

Few of the pictures sent by our field partner has been uploaded on our facebook page.

Donations raised for flood relief work will be sent to our field partners working in the area for providing relief to the flood victims. Our field partners will share a fund utilisation report and the same will be shared with all donors.