WEDAC adopted a
modified classic model where a group has to be composed of 5 members. The
members hold individual liability for their own loan and joint liability for
their group. The groups are administered
by selected leaders called –village association executive (VAE). The
association has a minimum of ten groups (50 members) and a maximum of 20 groups
(100 members). Members’ relationship within the group is their first line of
collateral. Their savings are the second line of collateral, while pledged items
are the third line of collateral (depending on the size of the loan). Each
group is required to meet at least twice per month; while the Village
Association should meet once per month.