MICROCAPITAL BRIEF: Wokai Raises $873k for Microfinance Lending in Rural China

Wokai, a US-based online microfinance fundraising platform launched in 2007, has reportedly raised donations totaling CNY 5.5 million (USD 873,000) to be disbursed in loans to approximately 900 people via two Chinese microfinance institutions (MFIs), the Association for Rural Development of Yilong Country (ARDY) in Sichuan and the Chifent Zhaowuda Women’s Sustainable Development Association (CZWSDA) in Inner Mongolia. The MFIs screen entrepreneurs before their loan requests are posted on the Wokai website. Members of the public can view information about each borrower and donate USD 20 or more that is theoretically loaned specifically to the selected borrower. The lenders’ money goes to the MFI sponsoring that borrower, typically reimbursing the institution for a loan that has already been disbursed. Contributors may not withdraw funds at any time even if the loan is completely repaid.

Wokai plans to reach a total of 100,000 borrowers over the next 10 years while expanding its work across central and western China.

By Charlotte Newman, Research Associate

About Wokai
Wokai is a fundraiser for microfinance institutions that was launched in 2007. It allows donors to contribute online to microfinance institutions (MFIs), which then make loans to low-income individuals. Contributors may not withdraw funds at any time even if the loan is completely repaid. Wokai works with two microfinance institutions: the Association for Rural Development of Yilong County (ARDY) in Sichuan and the Chifeng Zhaowuda Women’s Sustainable Development Association (CZWSDA) in Inner Mongolia. Wokai also has branches in Boston, Hong Kong, Los Angeles, New York City, San Francisco, Seattle, Shanghai, Toronto and Vancouver. Wokai has raised CNY 5.5 million (USD 83,000) to date.

Sources and Additional Resources:

New Straits Times: “Facebook-Style Microcredit Site Helps China Farmers,” http://www.nst.com.my/latest/facebook-style-microcredit-site-helps-china-farmers-1.62341

MicroCapital.org story, April 22, 2009, “NEWS WIRE: China: Facebook like Wokai Helps China’s Farmers Connect with Microfinance,” https://www.microcapital.org/news-wire-china-facebook-like-wokai-helps-chinas-farmers-connect-with-microfinance/

MicroCapital Universe Profile: Wokai
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Wokai

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