MICROCAPITAL BRIEF: Looking to Cut Out Middleman, Samrudhi Microfin Society (SMS) Launches Online Lending Portal, WeCareIndia.Org

Samrudhi Microfin Society, an Indian nonprofit microfinance institution (MFI), has launched WeCareIndia.Org, an online lending portal that allows investors to lend as little as INR 100 (USD 2) to Samrudhi borrowers. The website differs from most other microlending sites in that it is owned by a microlender so no field external partners are necessary to carry out loan servicing.

Microloan types include microenterprise and agriculture loans. Lenders may access their principal as it is repaid by the borrower in addition to interest of 3 percent to 4 percent at a flat rate or 7 percent to 8 percent annualized. Borrowers are charged interest of 18 percent per year. Loans in the microenterprise category are protected by insurance on the life of the borrower. Agriculture loans are not protected by life insurance, and lenders to both categories are vulnerable to default stemming from causes such as theft and natural disaster. No financial information is available for Samrudhi Microfin Society.

About Samrudhi Microfina Society:
Established in 2007, Samrudhi Micro Fin Society (SMS) is a nonprofit microfinance institution operating out of Karnataka, India. While financial data is not available on the institution as of 2011, Samrudhi plans to scale-up its operations to reach 200,000 poor families by 2013. Its long-term vision is to cover at least 50 poorest districts of India. Samrudhi operates the website wecareindia.org through which lenders may support microborrowers while earning interest.

By Ariana Malushi, Research Associate

Sources and Additional Resources

We Care India
http://www.wecareindia.org/index.aspx

Sumrudhi Microfin Society
http://www.samrudhi-india.org/

MicroCapital.org Story, May 5, 2011 “MICROCAPITAL BRIEF: 17 Websites Now Allow Individuals to Commit as Little as USD 20 as Microfinance Loans”
https://www.microcapital.org/microcapital-brief-17-websites-now-allow-individuals-to-commit-as-little-as-usd-20-as-microfinance-loans/

MicroCapital.org Story, April 25, 2011 “MICROCAPITAL BRIEF: Zidisha Online Lending Platform Offering Borrower Performance Ratings, Facilitates $50k in Loans”
https://www.microcapital.org/microcapital-brief-zidisha-online-lending-platform-offering-borrower-performance-ratings-facilitates-50k-in-loans/

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