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'''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.<ref name="SF Chronicle">[http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/13/BACB16VUFE.DTL Tiny loans, big difference at Bay Area Web site]</ref><ref name="MSNBC">[http://worldblog.msnbc.msn.com/archive/2009/07/28/2012055.aspx "Role-reversal: Americans provide loans to Chinese - World Blog - msnbc.com"]</ref> It is a [[501(c)|501(c)(3)]] [[non-profit organization]] based in [[Oakland]], with core operations in [[Beijing]], supported by individual donors, corporate sponsorships, fundraising events and grants.<ref name="About">[http://www.wokai.org/f/about/index.php "About" on Wokai.org]</ref>
==How it works==
Wokai allows accredited [[microfinance]] institutions in China, called "Field Partners", to post profiles of qualified local [[entrepreneur]]s on its website.<ref name="SF Chronicle"/> Lenders browse and choose an entrepreneur they wish to fund.<ref name="SF Chronicle"/> Wokai aggregates loan capital from individual lenders and transfers it to the appropriate Field Partners to disburse to the entrepreneur chosen by the lender.<ref name="About"/> 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.<ref name="MSNBC" /> As the entrepreneurs repay their loans, the Field Partners remit funds back to Wokai and the lender is alerted of this repayment.<ref name="About"/><ref name="AsianWeek">[http://www.asianweek.com/2009/07/13/bay-area-microfinance-reaches-rural-chinese/ "Bay Area Microfinance Reaches Rural Chinese : AsianWeek"]</ref> Once the loan is repaid, the Wokai lenders can re-loan it to another entrepreneur, up to a total of three loan cycles.<ref name="About"/>
Donors' funds are transferred to Wokai through [[Google Checkout]].<ref name="HelpCenter">[http://www.wokai.org/f/about/index.php?page=questioncenter "Help Center" on Wokai.org]</ref> Wokai's Field Partners charge between 15% and 20% interest rates.<ref name="HelpCenter"/> Field Partners use the interest from borrower loans to cover staff salaries, transportation, and operating costs.<ref name="HelpCenter"/>
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