Q: What is a FAQ? Q: How does the money get to the student?
A: Deposit funds received by the community will be paid as loans by cheque and as far as possible will be delivered to the beneficiary by one of the members.
Q: How can I be sure of the integrity of the student?
A: The Community will evolve and develop a procedure to screen and select the needy students and involve the volunteer members suitably located. Before a student is considered for a loan his application will be first vetted and procedure evolved to ensure that the most needy gets due priority.
Q:How will students be chosen?
A:The priority for choosing the students is as under
1. Needy cadets from National Defence Academy in consultation with NDA authorities but entire responsibility and risk will be that of the community in case of any defaults of loans
2. It is proposed to similarly select the students from Sainik Schools in India and it will be in consultation with the school, parents and the student. It is hoped to get volunteer members from the alumni to be our representatives for this.
3. Further priority will be decided by the members as the community and funds available for giving loans increase.
Q; Do I get interest on my deposit ?
A: No, deposits made by you do not earn any interest. Your loans to the students through community are not an investment.
Q: Is my deposit tax-deductible?
A; No, your deposit is not considered a donation because it is possible that you will receive your money back. The Community cannot assure, however, that your loan will be repaid.
Q:Will I get my money back?
A:Lending to the students through the community involves risk and community does not guarantee lenders/ members that their deposits will be repaid.However it is hoped that the students will repay the loans once they start earning and then they will be returned to you if so desired.
Q: What is Deposit Diversification?
A: You can diversify your deposit portfolio by lending to multiple students. For example, you can make a Rs 2000/- loan to four students (e.g. loan diversification) or a single loan to one student (non loan diversification). If one of the four students defaults and the others do not, you may still get 75% back whereas if the single student defaults you may not get any of your money back.
Q: Do I need to report my deposits or loans in my tax return?
A: We do not believe that you need to report loans in your tax returns because the loans do not accrue interest.However, we are not in a position to provide tax advice. Therefore, please consult with your tax counsel regarding the rules that apply to you.