Rang De : My contribution status update

LITTLE BY LITTLE

I think now is a good time for a nice reveal. I feel good about this. And this is a great way to end the year.

I'm really proud of contributing to this 7 years ago when Rang De first began. The amount I contributed equaled about a years worth of income from work. I put the money into Rang De for about a year or two and then stopped.

While most people put their money into real estate and the stock market, I put mine into people.

Rang De is a microfinance nonprofit organization in India and the average loan is about $100-$250 each. It helps out people in the short term and for some it really changes their predicament. The average loan is paid back in a year and that money is then loaned out to another needy person.

The interest (for India) is reasonable. In the beginning it was around 7%. Now it is closer to 10% I think. The interest goes to pay staff to disburse and collect the money and to seek potential candidates for loans. So on a $100 loan, $7 to $10 is used for the overhead which, in my opinion, is highly efficient, considering travel and other expenses.

Here is now the tally after 7 years:

8,523,200 rs loaned out which is about $129,000 USD with the current 66 rs to 1 usd exchange rate. Mind you, I put nowhere near that amount in. The high amount comes from recycling the money numerous times, and I'm pleasantly surprised it's so high.

Number of loans which I contributed to wholly or partially: 5588. This means I contributed to the betterment of about 5588 individuals. (I think a very small fraction of the loans are re-loans - same individual receiving another loan after the previous loan is paid back).

Oh and yes, loans have been forgiven due to death, medical conditions, or natural disasters (mostly floods).

And recently, Rang De has partnered with organizations like the World Bank. Hey, the World Bank has to do some positive work too to not look so sinister. What Rang De does is loan out to individuals and cooperatives so if the World Bank wants to help out with that, let them.

So from my small contribution there's been a difference somewhere in the world.

I have more to say about the program, its impact, and what the unintended consequences may be. I will have more posts on this.

They want Muhammad Yunus sacked

The psychopaths are out marching in full force. Only in bizarro world.. only in bizaro world. Muhammad Yunus accused of tax impropriety? There would be no one in government or corporations left!

[Youtube] Muhammad Yunus should be sacked, or so THEY want

Jessica Jackley: The Story of Kiva

Here is an inspiration. A leader. And what makes for a successful and happy career? When you do something with great intention, motivation, and passion. Money? That'll come along. Don't work for money. Work to make a difference. Leave behind a legacy. An ideal business doesn't make profit its bottom line, but looks at how it makes a positive impact to those it effects.

Imagine having a honest leader with integrity in their character. Trust is a bond that open doors. And you need it because you need the gears to work together. An individual can only do so much. A dedicated team can go much further.

School gets in the way. It limits the limitless imagination, possibilities, and desires of a person. I think a person should be home schooled with a really good mentor. The student should be the one doing the discovering while the mentor helps with the possibilities. Self learning is the best learning of all. Don't be a generalist. Be a specialist. Most of the classes in school are junk. Why do I need to know calculus? Why do I need to calculate a mole in calculus? Just tell me what a mole is and I can conceptualize it. I don't need to spending the whole week doing calculations on moles.

Here's my take on the speech in the classroom: In the video, I fast forwarded the teacher and students questions to when Jessica was speaking again. I was annoyed by it. They didn't have much to add to the conversation. And the teacher threw out thes buzz words and terminology to describe things that already happened in the past. I say, look ahead not what's in the rearview mirror!

Good news! Now at Groupon.com, buy $15 towards a loan at Kiva.org, and Groupon.com will add $10 credit to your purchase so you can provide a $25 loan for only $15! Hurry, it expires end of 11-30-2010!

Steps for purchase:
1) If you haven't signed up to Groupon.com yet, use this link as my referral (I get $10):
http://www.groupon.com/r/uu6760943

2) The pay only $15 for $25 credit towards a Kiva loan is here:
http://www.groupon.com/deals/kiva-national

Reminder: The deal expires end of 11-30-2010 (in 2.5 days) so do it now!


[Youtube] Jessica Jackley and The Story of Kiva


[Youtube] Jessica Jackley at Ted Global 2010: Poverty, Money and LOVE

Ramakrishna N.K. interviews Rangde.org MFI's Ram and Smita 10/2009

Here's an insightful interview that gives us a taste of some of what goes on behind the scenes of the microfinance institution, Rangde.org, which is based out of Chennai, India.

[Youtube Playlist] Ramakrishna N.K. interview with Rangde.org's founders Ram and Smita 10/2009

Congratulations Muhammad Yunus, Nobel Peace Prize winner

In a world of psychopaths, demagogues, and carpetbaggers bent on war and financial, economic, and political gain there's Muhammad Yunus who leads us to a better future.

To those who have Indian rupee accounts, Rangde.org is doing great work helping the poor in India. Everywhere else, Google's offshoot Kiva.org is helping thousands and thousands of people in the USA and around the world get out the misery of poverty. Participate in loaning some money to the poor today while interest rates are near 0%. Why keep the money in the bank when it can be helping somone? The repayment rate for Rangde is 100% and Kiva 98%+(after $10s of millions in loans) so your money's safe.

[Youtube] Congratulations Muhammad Yunus and thank you!

Muhammad Yunus on his Loans to Beggers project

Here's a funny but insightful segment on banking from Muhammad Yunus on his experiment to loan beggers without collateral.

[Youtube] Muhammad Yunus experiments with loans to beggers

Kiva.org microfinance opens in America

Kiva.org opens shop in America. Now anyone can provide a small loan to an American entrepeneur looking to open or expand their small business. The candidates must already have been rejected by an established bank for reasons such as "not enough credit history", "no collateral", et cetera.

[Video] Kiva on World News with Charles Gibson
[Video] Kiva on Good Morning America

Professor Muhammad Yunus: New Normalcy, Microfinance, and Grameen America

Professor Muhammad Yunus is the father of microfinance. He founded Grameen Bank in Bangaldesh which has provided microloans to the poorest people without collateral and has garnered a 98%+ loan payback rate. That's pretty good!

Grameen America: Video 1 | Video 2 | Video 3 | Video 4
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Muhammand Yunus highlights/principles:
* However you live, your habits and behavior cannot take away enjoyment from another person (in reference to climate change).
* Who's creditworthy? Almost everybody!
* The new normalcy cannot be the old normalcy else the economic collapse will happen again. We need a redesign.
* Financial apartheid has been practiced on poor people by the banks by not lending to them.
* You can clearly see that in the currently financial crises that banks are not giving loans to businesses forcing them to close. The same thing has been happening to the poor in perpetuity.
* Let's fully develop a person's gift and/or talent. The poor people are poor because they do not get the opportunity to full develop themselves.
* Selfless Business is Social Business. In social business an investment is made and gotten back with no profit. Th goal of th business is to improve people's lives. Some people have a desire to make money while others have the desire to be selfless, hence the need for social business.
* All inputs and outputs must be considered in a social business
* Let's put poverty in the museum

Grameen Bank vs Goldman Sachs:
Grameen has no contracts or lawyers. Grameen takes no collateral. Grameen has a face to face relationship with the borrower. Grameen bank comes to the person to make the loan. Grameen's balance sheet is easy to understand while Goldman Sach's is complicated. (My opinion)Anything that cannot be understood by a high school graduate is bull.

[Video] Professor Muhammad Yunus on Social Business


My thoughts:
The economy is trickle up not trickle down. Whatever profits trickle up should be just that.. A trickle.

Subprime Mortgages:
Why do lenders offer schemes that make payments more difficult? I say either you qualify for a fixed loan or you don't get any loan. Why do you need to offer loans that are not fixed and 5-7% (current going rate)? This is not a spin the roulette, guess what your rate will be in the future, game.

So let me get this straight... You give a loan to less qualifed person (either lower credit score or less income) who will have a hard time paying back the loan. On top of that you attach a higher interest rate, and an adjusting/variable rate to the loan? No wonder the loan will never be paid off! That makes no sense to me. Why do lenders make loans unaffordable and unpayable? You might as well put a self-destruct button in these loans that adjust.

If you want to fund a microfinance loan, you can do so at Kiva.org. You can also provide a loan in India (if you have an Indian rupee based bank account or debit/credit card) by visiting Rangde.org. Rangde.org cannot accept dollars at this time.