Benito is an artisan who specializes in the crafting of traditional Andean musical instruments. He would like to invest in the purchase of raw materials, such as wood, strings and accessories, for the production of his flutes and charango guitars. Benito has been selling through NOVICA since 2003. This is his story:
Benito is an expert at crafting traditional Peruvian musical instruments, such as zampoña and quena flutes, tambourines, charangos and ocarinas. Each one is handcrafted using rustic tools. "Aiding in the preservation of our musical heritage is my family's legacy. We have carefully crafted traditional instruments for generations," he says.
"I am an artisan interested in making it on my own, but sometimes people need some form of assistance. This is why I would like you to know how grateful I am for your support through this interest-free microcredit. With it, I hope to really increase my sales this year. Thank you very much."
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.