subject: A Small Online Loan Can Provide A Better Life To The Indian Working Poor [print this page] Everybody wants to contribute towards improving the standard of living of the poor and underprivileged people of their country. Many working people in India used to take loans from moneylenders at a much higher rate of interest. The business models implemented by the microfinance institutions enabled Indian labourers to get finance at an affordable rate of interest. But some of these companies started acting as loan sharks, and used some debt recovery measures that resulted in the suicide of borrowers in Andhra Pradesh. The recent scams had many poor and underprivileged people skeptical about taking loans from the microfinance companies.
Many experts including Muhammad Yunus, the Nobel laureate and Bangladeshi economist, also emphasized on the need for special laws to regulate the functioning of microfinance companies, and add more transparency to the lending process. But some of the livelihood financing organizations like Milaap has introduced a web based lending platform that brings together the lenders and borrowers. A modern person has to spend only a few minutes to extend a small loan and get 100% repayment of the loan amount. The organization further monitors the utilization of the loan amount to ensure that the loan amount is utilized for achieving the desired purpose.
Improving the Current Income Level of the Labourers:
There are many people who donate money to attract income tax exemption. But often their donations fail to improve the living conditions and standards of the poor people. The online livelihood financing platform allows interested individuals to extend a loan, which will be repaid in full within the predetermined time-frame. You can visit the projects section of Milaap to choose the borrower. The section clearly mentions the need of the borrowers along with their name, location and source of income.If you are interested in subscribing towards increasing the existing incomes of the labourers, the Online Donation allows you to choose the right borrowers.
Also, you can decide the loan amount without any external influence. The website clearly mentions the amount required by a specific borrower. You have option to finance the complete project or sponsor any part of it. For instance, Vijayalakshmi, a young woman, resides in Rajendranagar, Karnataka, with her mother and brother. She works as a tailor in the United self-help group that manufacture garments. She needs Rs 50,000 to buy raw materials to buy machinery, fabric and trims. You can contribute the full amount or sponsor her needs in part to assist in increasing her monthly income.
Providing a Cleaner and Healthier Environment to the Poor People:
Milaap also allows lenders to extend their financial support to the labouerers for living in a better, cleaner and healthier environment. There are many people who need money to get clean water, energy, safer lighting and sanitation. Similarly, the poor also need money for education, training and healthcare. Based on your personal choice, you can give the specific amount for loan. You can browse through the borrowers profiles posted on the online platform and help the particular individual in getting his basic needs.
For people like DhanalatchmiManickkam , a labourer residing in Musiri, Tamil Nadu, proper toilet is a luxury she can only dream of. She was earning about Rs 4,000 per months, but lost her income source due to illness caused by lack of proper sanitation facilities. She needs Rs 10,000 to construct a proper toilet. The sanitation will allow her to live in a healthier environment as well as upgrade he standard of living. The loan amount may seem negligible to the educated people, but the amount can make a huge difference to the way the poor people live in India.
by: Gurudutta Mohanty
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