How pre-order crowdfunding works, and when you're charged
, 2 min read
Pre-order crowdfunding sounds complicated. It isn't. You back something before it's made, and it only gets made, and you're only charged, if enough other people back it too.
What you're actually buying
When you back a campaign, you're placing an order for a product that doesn't exist yet. You are not investing in the business, lending money, or buying a share. You get the product, and nothing else.
That distinction matters. In India, selling shares to the public through a website is tightly restricted. Selling a product before it's made is ordinary commerce, the same as a phone pre-order or a custom piece of furniture.
Why a goal and a deadline
Every campaign sets two numbers: how much it needs to raise, and by when.
The goal is the point at which making the product makes sense. Below it, the maker can't afford to buy materials or book production. Above it, they can.
The deadline stops campaigns from dragging on forever. It also gives everyone a reason to decide.
What happens to your money
There are only two outcomes.
The campaign reaches its target. You're told a day before, then the amount you approved is debited through your e-mandate. The maker is paid, starts production, and sends you updates until your reward ships.
It doesn't. Nobody is charged. On Banega you approve an e-mandate for the exact price when you reserve (₹0 that day), and it's debited only if the campaign hits its target by its closing date. If it misses, the mandate is cancelled.
The honest risk
The real risk in pre-orders isn't usually fraud. It's delay. Making things takes longer than people expect.
That's why every maker on Banega has to show a working prototype before launch, post an update at least every two weeks, and has every delivery date — kept or missed — recorded publicly.
If something still goes wrong, the refund policy explains exactly what you can ask for.
Have something you want to make?