Milaap Social Ventures is the first online platform that allows everyone around the globe to lend to India’s working poor and help them to get access to education, clean water, energy and more. It was founded by Sourabh Sharma, Anoj Viswanathan and Mayukh Choudhuryin in 2010 and is headquartered in Singapore. As of January 2012, the enterprise was able to raise USD200,000, changing the lives of 4,000 individuals in West Karnataka, Tamil Nadu and Maharashtra with a repayment rate of 100 percent.
The money is given to borrowers in the form of a loan, not a donation. This model can result in a long term impact, whereas donations tend to have a relatively short term life-span. By handing out a loan instead of a donation, the recipient is encouraged to be judicious and entrepreneurial. Also, once repaid, the same amount that was given to one individual can be used repeatedly to fund more borrowers. In the end, a small amount can go a long way and support several people in lifting themselves out of poverty.
What differentiates Milaap from other companies is that 100% of the money goes directly to the end-borrower, interest rates are 50% cheaper than those of competing microloans and they offer the first platform that enables everyone around the world to lend to India’s poor.