Later On

A blog written for those whose interests more or less match mine.

New Kiva loan

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Three of the microloans I made through Kiva have been repaid. I have now the option to withdraw the funds, contribute them to Kiva, or to make more loans. I chose the third, and just made a loan to this guy:

Gabil Rahimov is a 27 year-old local resident [Beylagan, Azerbaijan]. He is married and has two children. He is engaged in cattle breeding and selling. He has been doing this business since 2004 and now has three cows. At first he borrowed $600 from Normicro Beylagan branch to buy livestock. His subsequent loans were $900 and $1000. The business is now developing. He needs $1200 to buy four calves and increase his income.

I encourage you to make a Kiva microloan. It’s quite satisfying to see the results. Here are the three that were repaid:

Zara’s inital loan was initially intended to be put to work buying a new sewing machine and making renovations to the back of her shop. The weather warmed up quickly in Sliven this year, and Zara made the decision to use some of the money to buy material to make women’s shirts. She had not finished selling her winter inventory, so she hadn’t the amount of capital she expected to be able to put into this season’s product. She has rigged her sewing machine so it works “well enough for now” (with screwdrivers literally sticking out of it) and her plan is now to buy a new machine once she has moved some of her spring stock. She is selling these shirts in her shop, as well as a small store on the other side of town. Her location is not on a main street with good pedestrian flow, so she ends up selling most of her wares to people who live in the neighborhood and customers of her tailoring business.

She has enough capital to move ahead with minor renovations to the back of her shop to create a proper changing area for customers to try on her goods. That process is an exceptionally slow one, due to not only the general pace of business in Bulgaria, but also the government red tape. She told the following joke:

An American and a Bulgarian enter a contest to see who can build the fastest 100-meter tall building. 9 months go by, and the American says “another week, and I will be putting in the final window.” The Bulgarian says “another week, and I will have the final stamp on my building permit to begin.”

Seems applicable.

And, from the note saying the loan has been repaid:

Zara has completed her loan this week with a balloon payment of approximately $100.  We’ve helped her to re-schedule her payments several times over the past 6 months to make fiscal room for several of her other personal and professional financial obligations.  We’ve done this because Zara has proven herself to be a responsible borrower and has used her loan proceeds as planned.  The long-term results of this loan are tangible: a new sewing machine with higher productivity (and uptime) than the last and a changing room so that the clients for whom she makes custom clothes can try on her creations in privacy.  Although the money has be repaid, the benefits last.

And another microloan, now completely repaid:

I’m an itinerant bread salesman  [in Honduras]. Twice a week I go to Tegucigalpa and buy my bread supply for the week directly from the bakeries. Upon returning to my community I travel in my car throughout my neighbouring villages selling the bread. I’ve had my business for three years and in this time my clientele has increased significantly, particularly with small grocers. At the moment I do not have enough capital to cover the demand that I have.

And the third, again completely repaid:

I provide transportation for people travelling from the city of El Paraiso to Las Manos in the border between Nicaragua and Honduras. I’ve been doing this for the past seven years. I make the journey on a daily basis, so I need to take my van to the mechanic for a check up and restore the seats in order to improve the security and comfort of my passengers.

Four other loans are in the process of repayment, one almost completed. It’s a great thing to do.

Written by Leisureguy

25 May 2007 at 8:08 am

Posted in Daily life

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