Building sustainable, financially-independent ethos for MSMEs and the informal sector

Returnable Grants (RGs) have revolutionized the landscape of financing and social impact, providing leverage from a funding perspective while creating a multiplier effect for participants that drives positive change.

An Initiative By

Principles of Returnable Grant

Zero interest, zero collateral loan like CSR and FCRA compliant financial instrument

No legal obligation on grantee to repay grant

Easy & flexible terms to repay grant money

Repayment aids to transitioning to a more formal credit guarantee

The Solution to Financial Challenges Facing MSMEs

The blended finance continuum offered through Returnable Grants, combined with financial literacy training and a pre-credit score pave the way for MSMEs to earn a Credit Guarantee that enables access to formal credit.

On-ground Challenges of MSMEs and informal workers

  • Lack of collateral to access formal bank loan
  • Inability to raise capital or scale business
  • Shortage of capital
  • Threat of high interest rate from private moneylenders

Benefits of Returnable Grant

  • Allows money to be directly credited into the participants’ accounts or given out as cash equivalents such as vouchers
  • Enables MSMEs to operate for longer periods to scale, and/or adopt new techniques and products
  • Levies individuals with a moral (and not legal) obligation to repay
  • Potential ability of selected participants to repay as a cohort
  • Access to financial literacy training and a pre-credit score that can put them on a pathway to access formal credit

Journey so far…

Creating evidence on good financial & digital behavior for the vulnerable locked out of the formal economy

5-7x

multiplier effect & transformative long-term change

97%

repayment rate despite no legal obligation on grantee

33,000

participants impacted till date

Contact us to support MSMEs

Stories of impact

News and Updates

Returnable grants: Securing the financially vulnerable

The returnable grant offers an interest-free solution that can help India's economically vulnerable withstand pandemic-induced financial shocks.

From a vicious cycle to a virtuous cycle

A pioneering new blended finance programme could create a ‘graduation’ pathway to formal credit for informal sector workers and entrepreneurs

Amplifying Impact: The Multiplier Effect of Returnable Grants in Financial and Social Transformation

Returnable Grants (RGs) have revolutionized the landscape of financing and social impact, providing leverage from a funding perspective while creating a multiplier effect for participants that drives positive change. The RG with its unique zero-interest, zero-collateral, no legal obligation to repay has the potential to become a catalysing tool that can empowering individuals and businesses that were previously deemed “ineligible” or “high-risk” to access formal credit.