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Wokai

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Wokai
FoundedMarch 2007
FounderCasey Wilson
Courtney McColgan
FocusEconomic development
Location
Area served
China
MethodMicrocredit
Key people
  • Casey Wilson (Chief Executive Officer)
    • Websitewww.wokai.org

    Wokai is an organization that allows people to contribute directly to microfinance institutions in China which in turn lend the money to entrepreneurs in rural China.[1][2] It is a 501(c)(3) non-profit organization based in Oakland, with core operations in Beijing, supported by individual donors, corporate sponsorships, fundraising events and grants.[3]

    How it works

    Wokai allows accredited microfinance institutions in China, called "Field Partners", to post profiles of qualified local entrepreneurs on its website.[1] Lenders browse and choose an entrepreneur they wish to fund.[1] Wokai aggregates loan capital from individual lenders and transfers it to the appropriate Field Partners to disburse to the entrepreneur chosen by the lender.[3] The average loan is around $300 and is used by farmers to invest in simple business improvements such as adding additional livestock or buying new products for dry goods stores.[2] As the entrepreneurs repay their loans, the Field Partners remit funds back to Wokai and the lender is alerted of this repayment.[3][4] Once the loan is repaid, the Wokai lenders can re-loan it to another entrepreneur, up to a total of three loan cycles.[3]

    Donors' funds are transferred to Wokai through Google Checkout.[5] Wokai's Field Partners charge between 15% and 20% interest rates.[5] Field Partners use the interest from borrower loans to cover staff salaries, transportation, and operating costs.[5]

    Organization and team

    Wokai was founded in March 2007 by Casey Wilson and Courtney McColgan after meeting while studying at Tsinghua University in Beijing.[6] It currently has a staff of 6 and maintains 3 chapters of local volunteer representatives in New York, San Francisco and Seattle.[7]

    Publicity

    Statistics

    As of July 26, 2009, Wokai has raised $42,516 in loan capital from 424 contributors to distribute to 150 recipients.[8]


    Sample loans

    Loan to buy straw as cattle feed

    • 47 year old seeks 4,000 yuan microloan to buy straw as cattle feed to expand cattle raising business

    References

    1. ^ a b c Tiny loans, big difference at Bay Area Web site
    2. ^ a b "Role-reversal: Americans provide loans to Chinese - World Blog - msnbc.com"
    3. ^ a b c d "About" on Wokai.org
    4. ^ "Bay Area Microfinance Reaches Rural Chinese : AsianWeek"
    5. ^ a b c "Help Center" on Wokai.org
    6. ^ China Calling : Facebook for China's Farmers
    7. ^ "Team" on Wokai.org
    8. ^ "Home" on Wokai.org

    See also

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