Product Details

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.