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