Whether crowdfunding or loans are better depends on the specific circumstances of the borrower and the purpose of the funding.
Crowdfunding is a way of raising funds from a large group of people, usually through an online platform. It can be a good option for individuals or organizations who may not qualify for traditional loans or who are looking for alternative sources of funding. Crowdfunding also allows for more flexibility in terms of the number of funds raised, as there are typically no minimum or maximum amounts that need to be raised.
On the other hand, loans provide a lump sum of money that is typically paid back with interest over a set period of time. Loans can be a good option for those who have a clear repayment plan and the ability to make regular payments. Loans may also offer lower interest rates than some crowdfunding platforms, which can be beneficial for borrowers in the long run.
Ultimately, whether crowdfunding or loans are better will depend on the specific needs and circumstances of the borrower. It is important to carefully consider all options and seek professional advice before making a decision.
Yes, crowdfunding is legal in Nepal. In fact, the government of Nepal recognizes crowdfunding as a legitimate way to raise funds for social causes. There are no laws or regulations that prohibit individuals or organizations from using crowdfunding platforms like Aarambha to raise funds for various projects and initiatives.
However, it is important to note that there are certain regulations and laws that individuals and organizations must adhere to when using crowdfunding platforms. These include laws related to taxation, fundraising, and financial transparency. Crowdfunding is still in the process of development in Nepal.
Crowdfunding is one of the quickest and easiest methods of raising money for some important needs and/or purposes through the use of the internet and social media. Aarambha is the first online platform for Nepal on the internet that allow you to raise a large number of donations from people around you and throughout the whole world so that you can fulfill any need or requirement that benefits certain serious personal, social, creative, and/or medical needs. Aarambha makes this process easy, transparent and cost-effective.
There are hundreds of fundraising campaigns being started every day on different popular fundraising websites throughout the world. Most of the fundraisers utilize the fundraising platforms to ease their payment for critical and serious needs; mostly, those related to medical requirements and serious treatments; like cancer care and/or treatment, relief campaign for support disaster management, a non-profit or social cause or sometimes, even personal needs like education or any serious needs.
Crowdfunding doesn’t always benefit the one who makes pledges. Rather, it also benefits the person or the organization making donations. Depending upon the type of the benefit that the donator gets, there are 4 major types of crowdfunding as listed below:
Reward-Based Crowdfunding
This type of funding involves a reward that is given to the supporter in exchange for the money that contributes to a project/cause. Here, the reward can be anything and in any form. Sometimes, this reward can also in the form of an exclusive discount or a special gift.
Donation-Based Crowdfunding
This type of crowdfunding is completely meant for the beneficiary without meaning to give anything to the supporter in return for the money that he/she contributes. The only thing that the supporter gets in this context is the self-satisfaction.
Debt-Based Crowdfunding
This mode of crowdfunding is something like a banking finance. Here, the donators get their money back along with an interest. Although it’s legal in Nepal, it’s still not that feasible as it should have been because it needs a huge upfront capital which is hardly possible for the startups.
Equity-Based Crowdfunding
This mode of crowdfunding is one of the modern modes. Also, it’s getting popularity with the passing time. Here, the person making any contribution also gets certain equity or share in the company.
You don’t need to pay anything in-order to start a fundraiser campaign on Aarambha. You can start it for completely free of cost. Aarambha simply charges you with a few percentage of the amount that you raise through the fundraising campaign as fees or service service-charge based on the type of package you choose. Aarambha is designed to help you get the maximum amount of what you raise through your campaigns. The government applicable taxes and gateway taxes will also be deducted.
Whatever amount you raise through Aarambha is considered a donation or a gift. And there’s no liability for you to return the money back to the company at any point and in any manner. With this, you can be fully sure about getting all your amount that you raised through your campaign without the worry of debt or interest.
On Aarambha, you can start a fundraiser immediately. Simply, add the relevant images and information to let the donors know about your aim behind starting the fundraising campaign. Once you do this, the professionals from Aarambha will reach out to you to verify the information that you provided. You can simply submit all the supporting Documents and your ID Proofs, and other relevant documents for the verification. Having this much done will start your fundraising campaign.
Once your fundraising campaign raises a certain amount via Aarambha, you can make a request for withdrawal. We shall transfer your funds within 5-7 days after we verify your bank-account details. There’s no limit on request for withdrawals. You can request as many withdrawals as you need.
Honestly, Aarambha earns through the success fees. It happens with every crowdfunding company that it compulsorily needs manpower and technology to keep itself up and running on its platform in the market. The people and technology involved in keeping it functioning in a well manner need to get paid in-order to live their life just like other people do.
No, Aarambha doesn’t ever ask you to pay anything that you collect / raise through crowdfunding using our platform. However, in case if you need to provide your backers with rewards in exchange for their money, you must get it done.