Pedro and his wife and three children are Guatemalan silversmiths specializing in jade and sterling silver jewelry. They would like to invest in the purchase of fine silver to increase production.
Pedro and his family have been selling through NOVICA since 2010. This is their story:
"After working for silversmiths for six years, we decided to open our own workshop. We are all involved in the family business. We've developed a good working relationship. Everyone specializes in a different aspect and we complement each others' work."
"We appreciate this microcredit very much, because it will allow us to purchase enough silver to continue working for a good while. This in turn will allow us to invest in more materials and cover the salaries of those collaborating with us at the workshop. Many thanks, and may God bless you."
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.