Nestor is a Peruvian artisan who specializes in alpaca sweaters, ponchos and accessories. He would like to invest in the bulk purchase of yarn in a variety of colors to expand his product lines.
Nestor has been selling through NOVICA since 2002. This is his story:
Nestor hails from Peru's Puno region, renowned for quality alpaca and sheep wool. He has been dedicated to the textile arts, a family trade for generations, for more than 25 years. When he first began to weave, he worked on the rustic looms he built along with other family members. Together they sold their creations at local markets until they were able to upgrade to more modern machinery, which in turn allowed them to develop new designs and expand their workshop.
"I started with a flat type of knit and little by little I ventured into creating collections with raised motifs that, for a long time, had been designs I had only sketched out on paper. Every year I learn more about new color trends, too, and so I have gradually been increasing the variety of designs I have to offer my customers. I wish to take this great opportunity of interest-free microcredit and use it toward the creation of my new collection. I feel like I finally have the time to dedicate to designing and knitting, rather than constantly searching for new ways of selling."
Novica is an e-commerce website that allows artisans around the world to sell unique, high-quality goods directly to consumers. It also offers small loans to help artisans in the developing world start and grow their businesses. It’s possible to buy goods created by the artisans you help fund on the Novica website.
Repayments on Novica loans are tied to artisan revenue. This means that if an artisan has a good month, they will pay back more -- or less during slower months. To accommodate this, all repayments on this loan are due at the end of the loan term. Any repayments received before this deadline will be considered pre-payments, but will still be distributed to lenders as usual.
Because Novica is not a microfinance institution, Kiva’s risk rating system is not applicable. Kiva has conducted onsite due diligence, and Kiva’s Investment Committee approved the organization as a partner. Novica offers artisans loans at 0% interest.