During a loan cycle, the amount repaid every month by the borrower is accumulated online in your Milaap account known as Milaap Credits. Milaap credits can be reused to loan to other borrowers or can be accumulated for withdrawal to your bank account (for India, Singapore based lenders) and PayPal account (Other lenders)
On receiving the first loan installment, you will hear from us via email. This process is carried out on a monthly basis. You can also login to your Milaap account and check how much has been repaid to you (Milaap Credits) as well as the progress of your borrowers.
As the borrower repays the loan, your account on Milaap.org will be credited each month and you will receive an email alert with your repayments.
You will also be able to re-lend your credits to other borrowers as you are repaid. This allows a small amount of money to make an impact on multiple families in all areas of our loan programs.
Each loan has a repayment schedule with the start and end dates listed on the profile. Typically, these range from 12 to 36 months.
When you login to your Milaap account, you will see an option to ‘Auto re-lend.’ When you choose this, you no longer need to wait until your credits reach the minimum loan amount to lend to another borrower. We will automatically do so on your behalf, to a borrower chosen based on the urgency of need. You’ll receive an email with the details of the borrower who has received your loan and can login to your Milaap account to check the same.
Instead of letting your credits lie unused in your account until it reaches the minimum loan amount, or until you have the time to pick a borrower to re-lend, you can let us take care of it. Auto re-lending ensures that as few as 50 credits will also get reused. This way, you also make your contribution go the extra mile!
When you login to your Milaap account, uncheck the Auto re-lend option, or just send us an email to feedback [AT] milaap [DOT] org. We’ll send you a confirmation email and opt you out.
Milaap works with proven grassroot-level organizations in order to select our borrowers in our focus areas of education, energy, enterprise development, water, health & sanitation and sustainable farming. With experience, our field partners have developed a deep understanding of the borrowers’ needs, cultures and markets. Once the borrowers have been selected on the basis of need, potential, credibility and repayment ability, we develop customized programs to disburse the loan and manage the loan progress.
Currently, Milaap’s borrowers are in Karnataka, West Bengal, Maharashtra, Rajasthan, Orissa, Tamil Nadu, Uttar Pradesh, Bihar, Andhra Pradesh, Manipur and Mizoram.
Milaap has a unique method to ensure that the loans are used appropriately. We issue the loan amount to the borrowers in the form of coupons which the borrower can then use to pay for a service. We also regularly monitor the progress of the borrower towards the desired goal.
Some loans, especially in the health and education areas, may be urgently required. In such cases, the need and situation is assessed, and the borrowers receive the loans from the field partners before the profile is posted on Milaap’s site. However, once the profile is posted on our website, it is treated the same as all other loans.
All loan requirements on Milaap have a display life of 30 days, during which the amount needs to be raised. The “invest-by date” indicates the last date by which all loans can be made to a particular borrower.
Every borrower on Milaap gets to avail of our services. According to our policy, we cover the remaining amount required to complete the loan from our corpus, and transfer the full amount to the borrower. This way, we aim to ensure that each of our carefully customized programs have an effective start.
Milaap’s field partners charges the borrowers an interest of about 8% of the loan amount, as of June 2013.
This interest is used to cover the cost of operations in selecting the borrower, reaching out to them, supporting their progress and collecting repayments on a monthly basis.