Novica
Last updated May 30, 2018
Partner Description:
Novica is an e-commerce website that allows artisans around the world to sell unique, high-quality goods directly to consumers. These goods include home furnishings, apparel, jewelry, ceramics, art, and more -- items that would often never make it to international markets at the prices Novica pays to artisans (and offers to consumers).
By providing detailed information and stories about each artisan, Novica cuts out middle-men and establishes direct global connections that support entrepreneurs and small businesses in Indonesia, the Andes, Mexico, Brazil, Central America, India, Thailand, and West Africa.
To supply artisans with working capital to grow their businesses, Novica launched an Artisan Loan Program in 2010. This platform allows the internet community to fund small, zero-interest loans for artisans. These loans -- ranging between USD$150 and $2,900 -- are repaid to lenders, who can then re-lend as many times as they want. As of early 2012, Novica had funded $200,000 in artisan loans.
Kiva is a natural partner for Novica. While some loans will continue to be funded directly on the Novica site, many new loans will be posted to the Kiva website so that Kiva lenders can help grow and expand this important loan program. These loans will give Kiva lenders the unique ability to buy goods produced by the entrepreneurs they support, deepening the lender-borrower connection.
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, Kiva will make all repayments due at the end of loan terms, averaging three to 24 months. Any repayments received before these deadlines will be considered pre-payments, but will still be distributed to lenders as usual.
Kiva’s flexible loan terms will allow more artisans to borrow the money they need to build their inventories, set up shop outside their homes, and even hire employees. This will amplify Novica’s mission to give artists the support they need to express their creativity and preserve cultural traditions while maximizing their income.
Repayment Performance on Kiva
This Lending Partner | All Kiva Partners | ||
Start Date On Kiva | Jun 6, 2012 | Oct 12, 2005 | |
---|---|---|---|
Total Loans | $3,389,425 | $2,044,253,980 | |
Amount of raised Inactive loans | $5,700 | $277,825 | |
Number of raised Inactive loans | 3 | 146 | |
Amount of Paying Back Loans | $376,600 | $159,648,240 | |
Number of Paying Back Loans | 152 | 192,147 | |
Amount of Ended Loans | $3,007,125 | $1,843,441,735 | |
Number of Ended Loans | 1,651 | 2,482,293 | |
Delinquency Rate | 5.25% | 12.19% | |
Amount in Arrears | $15,655 | $12,026,707 | |
Outstanding Portfolio | $256,203 | $98,620,847 | |
Number of Loans Delinquent | 22 | 65,671 | |
Default Rate | 0.01% | 1.83% | |
Amount of Ended Loans Defaulted | $167 | $33,700,785 | |
Number of Ended Loans Defaulted | 2 | 88,892 | |
Currency Exchange Loss Rate | 0.00% | 0.47% | |
Amount of Currency Exchange Loss | $0 | $12,608,670 | |
Refund Rate | 0.45% | 0.53% | |
Amount of Refunded Loans | $15,300 | $10,936,620 | |
Number of Refunded Loans | 7 | 9,669 |
Loan Characteristics On Kiva
This Lending Partner | All Kiva Partners | ||
Loans to Women Borrowers | 34.65% | 78.46% | |
---|---|---|---|
Average Loan Size | $1,878 | $393 | |
Average Individual Loan Size | $1,878 | $586 | |
Average Group Loan Size | $0 | $1,910 | |
Average number of borrowers per group | 0 | 8.3 | |
Average GDP per capita (PPP) in local country | $4,800 | $5,593 | |
Average Loan Size / GDP per capita (PPP) | 39.12% | 7.02% | |
Average Time to Fund a Loan | 3.35 days | 9.11 days | |
Average Dollars Raised Per Day Per Loan | $560.53 | $43.10 | |
Average Loan Term | 9.44 months | 11.5 months |
Journaling Performance on Kiva
This Lending Partner | All Kiva Partners | ||
Total Journals | 6,879 | 1,218,509 | |
---|---|---|---|
Journaling Rate | 86.92% | 41.89% | |
Average Number of Comments Per Journal | 0.00 | 0.02 | |
Average Number of Recommendations Per Journal | 0.00 | 0.55 |
Borrowing Cost Comparison (based on 2017 data)
This Lending Partner | Median for MFI's in Country | All Kiva Partners | ||
Average Cost to Borrower | 0% APR | N/A | 26.44% PY | |
---|---|---|---|---|
Profitability (return on assets) | -4.35% | N/A | -1.35% | |
Average Loan Size (% of per capita income) | N/A | N/A | 0.00% |
Country Fast Facts
- Country:
- Nicaragua
- Capital:
- Managua
- Official Language:
- Spanish (official) 95.3%, Miskito 2.2%, Mestizo of the Caribbean coast 2%, other 0.5%
- Population:
- 5,848,641
- Avg Annual Income:
- $4,800
- Labor Force:
- agriculture: 31%, industry: 18%, services: 50%
- Population Below Poverty Line:
- 42.50%
- Literacy Rate:
- 82.90%
- Infant Mortality Rate (per 1000):
- 20.36 deaths
- Life Expectancy:
- 57.48 years
Lending Partner Staff
Andy MilkRobert Sovinsky
Susan Taylor