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Top Questions

Is lending through Milaap an investment?

NO. Milaap offers a way to increase the social impact of your charitable money through its micro-lending program. Your contribution goes out as a loan, instead of a donation, to a low-income borrower mostly in rural India.

With the repayments made by the borrower, you can choose to lend to another borrower for a different cause, thereby increasing your impact. Or, we also provide you with the option of withdrawing your money that has been added to your account once the borrower repays.

We support social projects and borrowers who are underprivileged, lending to whom is considered risky. Hence we neither promise to return the principal amount, nor promise any interest (financial return) on your loan contribution. We try our best, within prescribed practices, not to take unnecessary risk, so that we can avoid big defaults. This way, we can lend to more borrowers and increase the impact of your charitable money.

Therefore, it is best to consider lending through Milaap a form of charity, which can create multiplied impact, and NOT as a financial investment in any form whatsoever.

Is Milaap an NGO?

Milaap is not an NGO. We are a mission-driven company where social impact and self-sustainability are our primary goals.

In order to scale Milaap and reach as many families as possible, we’ve raised capital & resources from social investors to fund our technology, field operations and other long-term expenditures. Our goal is to be a self-sustainable organization.

Does 100% of my contribution really go to the borrower?

Yes, 100%. To ensure that your entire loan amount reaches the end borrower, Milaap also absorbs the payment transaction charges (credit/debit card, net banking) on your loan payment.

If 100% of the money goes to the end borrower, how does Milaap sustain itself?

Milaap charges a 5% fee on the loans disbursed to its field partners, in order to cover a fraction of its operating costs. We’ve also raised funds from private individuals and institutions to sustain our operations. Learn more about them here

Do borrowers pay interest on their loans?

Yes, our field partners charge an interest to cover the cost of operations in selecting the borrowers, reaching out to them, support their progress and collect repayments on a monthly basis. As of June 2013, the average interest and fees charged by Milaap’s field partners is about 8% on the loan amount.

You can find more information about the fees that Milaap's Field Partners charge on their Field Partner pages (www.milaap.org/field-partners). Simply click through to the partner that you’re interested in, you will see the cost of funds for that particular Field Partner in the ‘Performance’ section of the page.

As a mandate, we only partner organizations that fully disclose all the fees charged to the borrowers as well as comply with the central bank guidelines. We DON’T partner an organization that charges more than the industry average.

How will I be repaid?

As the borrower repays the loan, your account on Milaap.org will be credited with the amount each month and you will receive an email alert with your repayments. Login to your Milaap account and click on ‘Withdraw Credits’ to make a withdrawal request to your bank account (for India and Singapore based lenders). With effect from 25th January 2017, we no longer support PayPal transactions. We’ll process the payment and deposit the same within 10 – 14 working days.

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.

How can I get in touch with you?

The fastest way to reach us is through Twitter or Facebook. Send a tweet to @milaapdotorg or post on our page – https://www.facebook.com/milaap

For issues pertaining to loan payment, repayments and general queries, send an email to feedback [AT] milaap [DOT] org

You can also call us at + 91 8880340333 Monday – Friday