The North Eastern Region (NER) of India poses an interesting case for Indian microfinance. Formal microfinance initiatives began later in Northeast than the rest of the country. This is attributed to region’s unusual topography, low population, low level of commercialization and infrastructure.
We carried out field research in neighboring villages to identify borrowers' pain points. We also conducted interviews with NGOs and microfinance institutions to gauge market potential. The research led to GrassRoute, an online microlending platform which aims at facilitating easy fundraising for MFIs in NER and making microcredit available at low interest rates for the borrowers.
We carried out field research in neighboring villages to identify borrowers' pain points. We also conducted interviews with NGOs and microfinance institutions to gauge market potential. The research led to GrassRoute, an online microlending platform which aims at facilitating easy fundraising for MFIs in NER and making microcredit available at low interest rates for the borrowers.
Innovation of GrassRoute lies in-
1. Enabling quick fundraising for MFIs by connecting borrowers at bottom of the pyramid with online lenders.
2. Lenders, comprising white collared employees, students and other such people, can give an amount as low as Rs. 250.
3. On GrassRoute website, lenders would have the option to relend the money repaid to them. Thus, the same amount can positivley affect many.
4. On full repayment lenders get coupons/vouchers from our corporate partners as per the lender’s choice. Value of these coupons would be roughly equal to the renumeration they would have received on placing the amount in a bank account. This would incentivize people to lend.
