Kamala runs a handicraft business in which she produces toys. She receives bulk orders via mobile phone from wholesalers in Chennai. These toy products are sold throughout India. However, Mrs. Kamala has been unable to increase the work orders she services, due to lack of investment capital.
Kamala's toy business is ready to expand and needs capital to work with.
- Local currency:
- InVestment Size:
- $1,250.18 $1.00 = Rs42.44 as of 07/08/2011
- Expected InVestment Term:
- 13 months
- Currency Exchange Loss:
Since our micro-entrepreneurs are based internationally, their investments will be disbursed in their local currency. Interest rates, political instability, economic/financial market conditions can affect a currency's value with respect to the US dollar. Given the inherent risky natural of these developing economies, currency devaluation is possible. Currency exchange loss on your principal is possible if the US Dollar appreciates by more than 20% against the local currency.
|Years of Experience:||7|
|Number of Employees:||2|
|Previous Micro-Loan History:||Last loan size was Rs. 38,000 and has been repaid successfully.|
Terms: Flexible, revenue-sharing contract. Mrs. Kamala commits 10% of her monthly revenue in the form of variable-rate dividend payment. These payments are capped at a maximum of 30% of the InVestment amount per annum. The micro-entrepreneur is given a one month grace period in which no dividend is due and will make monthly principal payments based on the pre-determined InVestment term. Mrs. Kamala pledges 1% of her monthly net profit towards a Community ReInVestment project. InVenture will receive a management fee of 10% of the total InVestment size, paid from the cumulative revenue-share dividend payment, InVestors will receive SEEDs based on the residuals.
InVenture believes that community reinvestment can be catalyst for a positive feedback loop; growing a community through a business, while growing a business through a community. Mrs. Kamala will be reinvesting a percentage of her monthly gross profit in a community development project through the Association of Sustainable Community Development (ASSCOD). Mrs. Kamala's reinvestment will directly support ASSCOD's education and health initiatives.
Learn more about community re-investment
Progress Payment $106.71 made on 09/14/2011
September 2011 update: Mrs. Kamala begins revenue-sharing payments. Her business has generated Rs.11,600 in sales over the last month. She is still ramping up her production of toys and expects to be generating larger sales figure in the coming weeks.
Progress Payment $96.15 made on 08/10/2011
August 2011 update: submits her first principal repayment. Her first month of the contract is her grace period and does not make a revenue-share payment. Mrs. Kamala has purchased raw materials to expand her toy/idol making business.