Last updated June 9, 2012

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.

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.The Portfolio Yield is zero because Novica offers artisans loans at 0% interest.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 6, 2012 Oct 12, 2005
Total Loans $1,242,850 $997,943,900
Amount of raised Inactive loans $3,500 $438,300
Number of raised Inactive loans 3 409
Amount of Paying Back Loans $211,950 $148,087,550
Number of Paying Back Loans 111 186,589
Amount of Ended Loans $1,027,400 $849,418,050
Number of Ended Loans 776 1,070,304
Delinquency Rate 0.00% 8.53%
Amount in Arrears $0 $8,137,335
Outstanding Portfolio $149,706 $95,421,997
Number of Loans Delinquent 0 20,278
Default Rate 0.00% 1.41%
Amount of Ended Loans Defaulted $0 $11,937,620
Number of Ended Loans Defaulted 0 34,361
Currency Exchange Loss Rate 0.00% 0.45%
Amount of Currency Exchange Loss $0 $4,521,512
Refund Rate 0.06% 0.60%
Amount of Refunded Loans $700 $5,985,075
Number of Refunded Loans 1 6,003

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 28.54% 75.52%
Average Loan Size $1,396 $398
Average Individual Loan Size $1,396 $627
Average Group Loan Size $0 $1,757
Average number of borrowers per group 0 7.7
Average GDP per capita (PPP) in local country $4,800 $5,871
Average Loan Size / GDP per capita (PPP) 29.08% 6.78%
Average Time to Fund a Loan 1.45 days 6.92 days
Average Dollars Raised Per Day Per Loan $961.50 $57.52
  Average Loan Term 7.96 months 11.14 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,899 521,350
  Journaling Rate 98.10% 41.20%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.14

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 0% APR N/A 26.37% PY
  Profitability (return on assets) 2.8% N/A -1.15%
  Average Loan Size (% of per capita income) N/A N/A 15.88%

Country Fast Facts

Field Partner Staff

Andy Milk
Rob Milk
Jess Munro
Sarah Permenter
Robert Sovinsky