Frequently Asked Questions

Q: Why does WCDP give loans to women but not to men?

A: WCDP targets women in its microfinance program because women, historically and presently, have little or no access to loans from the formal banking sector. Men, on the other hand, who own most of the land and capital, are able to use that capital for collateral in a way that is not accessible to most women. That being said, WCDP does give loans to both male and female youth (aged 17 to 27). Youth are another targeted group due to their lack of access to formal sector bank loans.

Q: Why does WCDP charge interest for their loans? And why is it so high?

A: WCDP, like any microfinance program, charges interest for their loans. At present that rate is 15% simple interest, meaning that for a $100 loan, the borrower would repay a total of $115, regardless of the term of the loan. While this amount may seem high by Western standards, it is in fact quite low compared to most other microfinance programs, including Grameen Bank, which charges 20% simple interest. The amount of interest being charged was established by the women borrowers, not by WCDP. The purpose of the interest is to cover costs of administering loans, with any surplus being added back into the pool of money to be loaned.

Q: How much of my personal contribution goes to the programs?

A: Currently, the WCDP policy is that 100% of private donations go to microfinance or other programs. All administration is covered by other funding sources, including loan interest and other external fundraising efforts.

Q: Can I direct my donation into specific projects or specific individuals?

A: Donations made for the microfinance program will go to that program, and a donor can even specify whether it goes into the Youth or Women's fund. Donations to building schools or other specific projects will go to those programs. However we cannot direct a specific contribution to fund a loan for a specific woman's project. This is because loans are administered primarily by the women themselves and it is not determined who will receive those loans until the time the money is distributed. Therefore the money must be in-hand before the projects to be funded have been established. In this way WCDP gives full autonomy to the community groups to make decisions on which projects are best for the development of their communities.

That being said, it is possible to direct funds to a specific community.  If you check our Community Blogs you can see what is being done in each community, as reported by the members of that community themselves.  This is a unique feature of WCDP that allows direct communication between community based organizations and potential donors.  By simply clicking the Donate button posted on a specific community's blog page, your donation will be targeted to that community.

Q: What makes WCDP's microfinance program different from other microfinance programs?

A: WCDP allows the communities to take charge of their own development. We recognize that each community knows best what they need and how to achieve it, rather than assuming that we, as outsiders know best. This is why we partner with local Community Based Organizations that have been established for the development of their communities. We provide the funding but the loans are managed and administered locally. The groups decide which projects should be funded in order to best serve the interests of the individuals and the community as a whole. WCDP serves an oversight role to ensure that loan distribution is fair and open, and may provide advice when sought by the community boards, but otherwise it is up to the communities to make those decisions.

WCDP still provides small loans to women. Many of the larger more established microfinance programs believe that without big loans the program cannot be profitable. WCDP is not-for-profit so we are not limited by these conditions. We keep our overhead very low by maintaining minimal office space, and presently our staff is entirely volunteer. As we begin to grow with increased budgets funded by large grants from federal programs or private foundations we will be able to offer salaries for our staff, but will keep our microfinance programs small and independent.

WCDP emphasizes a comprehensive development model, funding loans and projects that cover the five primary sectors of development: Education, Health, Agriculture, Business and Infrastructure. The reason we do this is that we recognize that development of a community without considering all of these factors will leave the community with some element that is holding them back.