Notes from June 10 call with Ram (founder) and partnerships team (Sunder, Shraddha, Shivang)
Bc RangDe is RBI licensed (as a P2P NBFC), borrowers have same "status" as if borrowing from a bank. RD shares repayment info w all credit bureaus which builds borrower credit history
Some rules specific to P2P NBFC:
Max a borrower can take on is 10 lakh (whether individual or biz like an FPO)
Max a lender can give out is 50k per borrower and 50 lakh total (eg, up to 100 investments)
Max tenure is 3 years
Social investors are looking for 6-8% annual return and “radical transparency and impact”. Geography of borrower is really important (some investors want to visit their borrowers).
Suggested structure for DG
Position debt as "micro equity" to social investors w variable return and flexible repayment terms
Lend to individual farmer within an FPO, borrower authorizes FPO to receive the money
Impact partner (eg, DG) puts up FLDG for 10-20% of loan book to offset delays / defaults
DG will pay RangDe an “access fee” to reach borrowers via the platform; RD’s economics not impacted by interest rate or repayment rates. One time platform fee (2.4 lakh) and annual maintenance fee (1.2 lakh); there is also a 2% processing fee for each loan
Need to figure out if proceeds from govt subsidy programs like Agri-Infra Fund can be used to repay P2P loan through RangDe
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Intro deck received June 1
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