Wokai is a microfinance organization that helps impoverished residents of rural regions in China to improve their own living conditions. Small loans are given to rural farmers and others to empower them and to help them fund their own economic ventures.
How Does Wokai’s Micro-lending Work?
Wokai is a micro credit NGO in China that has a community of donors around the world. These donors pledge a small amount of money to help rural Chinese- as little as $10 can go a long way. The organization then collects and maintains information regarding loan recipients and posts this information on its website. Donors can browse recipients and choose which person they’d like to loan money to.
Once a loan has been made, Wokai’s field partners work with loan recipients to ensure that they repay their loans on schedule. Once a loan has been repaid, donors can then choose another loan recipient to help with the original funds. This way, one donation can help multiple recipients.
How Does a Microcredit Help People?
Wokai’s microfinance programs help rural Chinese people by providing them the means to create their own wealth. If a donor receives a small loan, he or she can then go buy something to help them make more money. For example, a farmer might buy a cow to sell milk, or a shopkeeper might add a shelf in his shop to display more goods.
After the loan has been made, users can track a recipient’s repayment progress on the website. Once the loan is repaid, the recipient is able to earn more and raise his or her living standards. This also empowers people and gives them direction over their own lives- something normal aid donations cannot achieve.
How Do Microcredit NGOs Avoid Corruption?
From the moment a donor sends money, an electronic paper trail is left behind. Each step of the way is carefully recorded and totally transparent. Wokai’s partner NGOs deliver loans to local recipients. Wokai requires that all partner NGOs have clear and transparent accounting processes and provide Wokai with bank statements. The Wokai Director of Field Partnerships makes regular trips to ensure that funds are being used for their prescribed purposes.
Where Does this Microlending NGO Operate?
Wokai has offices in Oakland, California and Beijing. Wokai is a Chinese microfinance NGO and its operations are carried out in different parts of rural China, mainly Inner Mongolia and Sichuan province.
How Can People Help Microlending in China?
The easiest way to help is to make a loan. Even a small amount of money can have a huge impact. When the loan is repaid donors can choose another recipient for the money. Spreading the word about Wokai is another way to help. Mentioning Wokai in blogs, at community meetings or to friends is a way to attract attention and donors. Wokai clubs and fundraisers are also popular ways to build support within local communities.
Readers can Wokai here and learn more.
