Published Article - iStrategic Newsletter - May Edition

THOUGHT LEADERSHIP IN INDIA – 2

May 5, 2021

1.    BACKDROP

In my last article, I  introduced my readers to the concept of THOUGHT LEADERSHIP, and how India is using it as a Concept to REINVENT ITSELF, in the post Pandemic era.

But let us remember, the battle is far from being over. The Covid Pandemic has pushed us back by decades, and Business Landscape has changed significantly, in the last 15 months.. Most Businesses have toned down their operations by laying off employees, withholding expansion plans, releasing Real Estate investments, and giving pay cuts to existing employees. In fact, many small Businesses have shut shop, realizing that Business is unsustainable in such prolonged turmoil.

On the other hand, the working population has also readjusted themselves to the new reality. They have cut down on all of their non-essential (luxury & entertainment) expenses, staying mostly at homes, and doing everything to manage a meager lifestyle.

In these difficult times, many people and institutions have lent out a helping hand, foregoing their own Profitability agenda.

Today, we will discuss a Social Initiative, from the Thought Leadership perspective

(THIS IS  NOT A REPORTED STORY)

2.    SOFT LOAN – A SOCIAL AGENDA

Mr. Sanjay Ahuja  is a successful Businessman in Delhi/NCR , and has established his repute over the last 2 decades. It is hurting him severely, as he sees all the pain around, and not being able to do much, to help the world.

He realized that there is a tremendous need to help people who have suffered huge financial losses in their lives, including losing their whole livelihood. A small financial support can go a long way in meeting their Hospital Bills, running their lives, or needing some more time to get the job that he has lost.

He looked around, and found a lot of Soft Loans being declared by the Govt, Banks or Financial Institutions that would lend the money for a short duration and has a predetermined Repayment schedule, with interest.

But what happens if the borrower is NOT IN A POSITION to pay back, on a mthly or qtrly basis ?

The idea of a SOFT LOAN SUPPORT SYSTEM came up in his mind, where the Borrower does not have to return the money every month, or every year.

How about giving the money for an ENTIRE PERIOD OF 5 OR 10 YRS ?

That made his brain start ticking towards a new solution.

3.    AHUJA SOFT LOAN

After a while, Mr. Ahuja mooted the concept of AHUJA SOFT LOAN.

However, Mr. Ahuja’s resources are limited, and hence he decided to work on a small scale.

THE WORKING MODEL

As already mentioned above, the Borrower, in the above plan,  can borrow the money for a maximum of 5 or 10 yrs, and use it for PERSONAL REASONS, at a very nominal interest. There is no compulsion to return the money very quickly. Considering the difficult times, The SOFT LOAN has a very simple interest

·       5 Yr Loan - Simple Interest of 1%, annually

·       10 Yr Loan – Simple Interest of 1%, annually

It is advised that after the tenure the soft loan is paid back as a BULLET PAYMENT. However, those who want to make partial payments in between, can also avail of the facility.

ENCOURAGING the Borrowers to repay the loan EARLY (against the existing lending norms of PENALISING the Borrower for repaying LATE), the Scheme offers an Incentive Payback, on an yearly basis.

·       5 Yr Loan - Incentive payback of (5-20) % on an yrly basis

·       10 Yr Loan – Incentive payback of (2-20) % on an yrly basis

There is NO INCENTIVE PAYBACK in the 5th. Yr (5 Yr loan) &  10th. Yr (10 Yr Loan) Repayment, as the Borrower has utilized the FULL TERM of the Loan.

NON PROFIT INITIATIVE

As can be seen from the above concept, this is not a regular Banking initiative to profit from the transaction. Instead, it is a scheme for the greater good of mankind.

Hence, Ahuja Soft Loan is a Businessman’s way of giving back to the society, at a time when society needs it.

Also, this is neither a FULL GRANT, Nor a FULL LOAN, but lie somewhere in between the two.

  In fact, it is more of a a Grant, and less of a Loan.

THE RESPONSE

Mr. Ahuja tested this scheme in a small scale in his neighborhood, and met with a stupendous response. People were indeed waiting for a little Financial Support from the rich and wealthy, to help them in this crucial period of their lives.

He received a lot of blessings from the Borrowers.

His initiative was even covered by a National Daily,that encouraged many to start similar activities in their local neighborhoods.

The State Govt. also came forward with their wholehearted support and encouragement.

4.    THE FINAL VERSION - INDIA SOFT LOAN & GRANT FUND

The success of the AHUJA SOFT LOAN encouraged Mr. Ahuja to think big, beyond his own capabilities.

He realized that the time has come to launch a better version of his own Initiative in the form of a Grant – The INDIA SOFT LOAN & GRANT FUND

While the SOFT LOAN is meant for the Common Man who can pay back after some time, The GRANT FUND is for causes that may or may not guarantee success.

Hence, the Grant Fund released Grants for some of the following causes, towards the poorer section of the society

·       For people who could not afford good education for their children, or good coaching for high level Sports

·       For expensive Medical Treatment of Diseases

·       For Research & Development in smaller Institutes etc.

There is however, a REPAYMENT CLAUSE, in the eventuality of Success of any of these initiatives.

Hence, a Scholar, a Sportsperson, or a successful Scientist can choose to repay the money that was paid to him/her on difficult times..

5.    UNCONDITIONAL SUPPORT FROM THE BUSINESS FRATERNITY

Since it was beyond Mr. Ahuja’s Financial capability, to launch a Nationwide Loan & Grant, he appealed to the larger Businesses Houses & the Govt., to come forward and support him in this huge initiative.

He received a wide support from the larger Business Community, who came together, for scaling up the initiative

Today, The INDIA SOFT LOAN AND GRANT FUND has received the Financial Backing of major investors in the country.

The Govt. has also declared Special Tax Initiatives for such social initiatives.

As of now, there are more than 3 lac people who have directly benefitted from THE INDIA SOFT LOAN & GRANT FUND.

Mr. Ahuja has been mentioned as a Social Leader in the Prime Minister’s ‘Mann ki Baat’

He has also been interviewed by a National Business Channel, for his progressive initiative.

The success of the above Working Model has enabled it to be adopted by major economies of the World.

6.    CONCLUSION

Mr. Ahuja has brought about a phenomenal Change in the country, through THOUGHT LEADERSHIP. Like him, there are several people around us who are redefining India, by letting go of stereotypes and conventional mindsets, and bringing out some new ways of serving society.

Let us all work towards a better India, and a better humanity.

For more details, please write to us at [email protected]

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. Abir Mozoomdar is the Founder & CEO of The Idea Factory

Abir has a rich Corporate experience of 15 yrs as a Strategy Planning Professional in reputed MNC’s like E&Y, Volvo India, Bharti Airtel & Tata Teleservices, before starting on his own.

Today, as a Self Employed Professional, Abir is a Trainer/Consultant & a Business Author, as well.

Abir has ventured into entrepreneurship with his two Knowledge Ventures - The Idea Factory & The Learning Hall.

Abir’s first Book ‘Thought Leadership in India’ analyses the Economic & Business landscape of India, & offers Structural Reforms in the long/medium term.

Abir’s initiatives of Entrepreneurship and Business Writing, has started THOUGHT LEADERSHIP MOVEMENT, a Worldwide Knowledge Revolution from India

Academically, Abir  is a BE (Elec) from Jadavpur University & PGDBA/CFA from IBS, Kolkata.

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