Ethical Microloans Devpost

A online app that connects lenders and investors with small businesses to bridge the lending gap. The app allows for investors' money to be pooled in ethical funds and distributed to businesses.

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Inspiration

Millions of small business owners, especially in rural areas, struggle to secure funding due to lack of credit history, inaccessible financial institutions, and unfavorable loan terms. At the same time, microlenders and ethical investors who want to support these businesses face challenges such as high operational costs, inconsistent funding, and difficulty in verifying borrower credibility. Microlending requires personalized lending processes, as many borrowers lack formal credit histories. Loan officers must travel to remote areas to assess borrowers, collect repayments, and provide financial training, leading to high administrative expenses. Microlenders often rely on donor funding, government grants, or impact investors, which can be inconsistent. Traditional banks are hesitant to lend to microlenders due to the high-risk nature of their portfolios. Without sufficient funding, microlenders cannot scale or offer larger loans, restricting their impact.

We wanted to create a simple, transparent, and scalable platform that connects small businesses with lenders, ensuring easy access to capital while offering investors a seamless way to fund verified entrepreneurs.

What does our solution do?

Ethical Microloans is a multifunctional app that serves both investors that seek to fund ethical businesses and low-income businesses that require loans. Investors can choose which funds they wish to support, such as the Clean Energy fund, based on expected returns, asset allocation and risk scores. They can also customise their asset allocation by picking specific businesses they wish to allocate funds to. We built an app interface UI/UX which demonstrates the capabilities of our product, including the ability for lenders to choose between specific funds or pick a specific small business to loan to. As for Businesses, they can use our seamless platform to apply for loans by providing the necessary details and documents. They can also track whether their loan has been processed along with the status of the loan and repayments on the app. There is a login page requiring credentials and the app will generate revenue through interest rate commissions on the loan terms agreed to by both the borrower and lender.

For Small Business Owners: Register on the platform and upload business and financial documents. Work with loan officers who help verify business legitimacy. Receive funding from investors or microlenders without requiring collateral.

For Microlenders & Investors: Browse verified businesses looking for funding. Choose funds or specific businesses to invest in and provide capital directly through the platform. Track repayments and reinvest in other entrepreneurs.

For Loan Officers: Assist small businesses in submitting financial records. Conduct on-ground assessments and upload verification documents (approval page). Ensure transparency and trust between borrowers and lenders.

The entire system simplifies microfinance by eliminating middlemen, reducing operational costs, and making funding faster and more accessible for small businesses.

The app can be accessed through the following link: https://codepen.io/Ilangovan-Harishiga/pen/OPJELxb (Username: Harishiga, Password: password)

How we built it

We utilised the capabilities of Cursor to draft the HTML, CSS and Java Script. After giving it the appropriate commands to procure the right script, we input it into CodePen.io. Using this, we coded an app interface in HTML, CSS and JavaScript.

Development Phases:

  1. Business Onboarding: Small businesses submit documents with loan officer assistance.
  2. Verification & Listing: Verified businesses appear on and are sorted into funds in the Ethical Microloans Investor Portfolio Page.
  3. Funding & Repayment: Investors fund businesses, and repayments are tracked through the platform.

Challenges we faced

Maintaining ethical standards for loans - ensuring less creditworthy businesses do not face predatory interest rates. Funding the solution, whether that be through a subscription based model or commisions on the loans provided. Building Trust Among Users – Ensuring that investors trust the businesses they are funding and that business owners feel comfortable using the platform. Regulatory & Compliance Issues – Adhering to RBI microfinance regulations and ensuring data security for borrowers and lenders. Encouraging Digital Adoption – Many small business owners are not tech-savvy, requiring a simple and intuitive user experience. Transaction Processing & Security – Ensuring seamless loan disbursement and repayment tracking.

Accomplishments we’re proud of

We developed a working app frontend prototype that connects small businesses with lenders and business and financial modelling to go alongside it. Integrated a verification system for loan officers to assess business credibility. Created both a place for investors to deposit money into funds and also a peer-to-peer lending model that operates like a mini-stock exchange for microfinance (based on investor preferences). Developed an investor dashboard to help investors track their portfolios. Designed an intuitive platform that simplifies funding and loan repayment tracking.

What we learned

We developed technical skills to code a frontend app UI/UX interface. We learnt how to estimate costs, revenues and profits and build financial models to make projections about the growth of the business. We learnt through research about market sizing, expected demand for our product and the world of microfinance, specifically in developing countries such as India. Small businesses need more than just loans – they need financial education, trust, and a streamlined way to access capital. Investors are willing to support microfinance – but transparency and verification are key. User experience is critical – a simple, accessible platform is essential for adoption, especially among rural entrepreneurs.

What’s next?

We would build a backend to establish a full working prototype of the product and release a beta version of the app for testing. We would enhance the UI/UX design to develop a design theme and make it more aesthetically attractive for users. So far, our app is focused on serving the Indian market. We will look into expanding into other international markets presenting a similar need through tailoring our advertising and app accordingly. Do research to determine the optimal funding solution - app-based subscriptions or interest rate commissions. Improve business verification processes to build lender confidence. Conduct a marketing campaign to raise awareness of the app and increase monthly app user base.

Steps for Long-Term Scalability & Adoption: Regulatory Partnerships – Work with RBI and microfinance institutions to expand reach. Expand Lending Networks – Partner with NBFCs, fintech lenders, and government schemes to scale impact. Localisation & Accessibility – Improve support for regional languages and offline features to onboard more small businesses.

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