We want you to invest in MicroGraam borrowers without worry of default by borrowers. We have created a Principal Guarantee Fund, from which you will be repaid if your borrower is unable to repay the loan. Most MicroGraam borrowers earn about Rs. 100 per day for each working adult member in the family. As a result, they have very little disposable income for unexpected expenses such as sickness. Despite their challenging lives, our borrowers have maintained a 100% repayment rate since 2011. We believe that this shows their deep commitment to repaying every rupee of your invaluable loan. However, there is still a risk that a borrower is not able to repay the loan.
In order to lower this risk, MicroGraam has setup a Principal Guarantee Fund, which will repay investors in case a borrower is unable to repay a loan. The Fund covers 20% of all of MicroGraam’s outstanding loans. Each partner organization contributes 10% to the Guarantee Fund to cover their borrowers. The remaining 10% is contributed by MicroGraam supporters who want to encourage other social investors (like you) to invest without worry of default. For more information, please see the FAQ's sections or go to the Contact Us section for enquiries.