Title: Business and globalisation the new face of micro lending in India: a case study

Authors: Ambuj Gupta

Addresses: D.E. Society's Institute of Management Development and Research, DES Campus, Deccan Gymkhana, Pune-411004, India

Abstract: The idea of Rang De was sown by the husband and wife duo Ramakrishna NK and Smita Ram in the year 2006, the same year in which Muhammad Yunus was awarded the Nobel Peace Prize for his pioneering work with Grameen Bank in Bangladesh. The website, http://www.Rangde.org was finally launched and went live on 26 January 2008. The entry of Rang De was at a time when the microfinance sector in India was reeling under the pressure of higher interest rate nearly 26% on account of higher operating cost. Rang De, the peer-to-peer (P2P) lending platform created a cult by offering a flat interest rate of 8.5% p.a. on microloans offered for a period of normally, one to two years. Since its launch in 2008, the growth of Rang De has been very impressive. Rang De is one such classic example which has proved how the power of social media can be leveraged for social good. This case traces the inspiring story of Rang De and aims to highlight the success of this innovative model of micro lending in India. The case further explores the challenges which Rang De faces in terms of acceptability, marketing, outreach and sustainability.

Keywords: P2P lending; peer-to-peer lending; India; Rang De; innovative models; MFIs; microfinance institutions; microcredit; social media; financial inclusion; social entrepreneurship; business; globalisation; micro lending; microloans; social good; case study; India.

DOI: 10.1504/IJBG.2014.062847

International Journal of Business and Globalisation, 2014 Vol.12 No.4, pp.485 - 495

Published online: 22 Jun 2014 *

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