Our Products

WEDAC Microfinance is currently offering two products constituted by group lending and individual lending products. Besides, it offers non-financial service such as training. Basically, training is aimed at building capacity and creates financial literacy to target market segment. However, group lending product is a cash cow of the institution.

Group Lending Product

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. 

Individual loan product

Individual loan product targeted medium entrepreneurs who consider themselves unfit in the group setup, the institution has not grown this product much due to limited product knowledge.

In the future the Institution is planning to introduce other lending products like;

a)    Salary loan product for Government employee

b)    Renewable energy loan product

c)    Water sanitation loan Product for women in rural areas.

All these products will be introduced depending on the availability of fund and addition of new human resource