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MFI CIA - Azerbaijan - 6% p.a. loan for carpentry

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With shipment 12 for $0.00
Loan amount: $588.00
Amount to be repaid: $623.28
Interest: $35.28
Description

Your loan will go to Gasan Mammadli, a microentrepreneur endeavouring to increase his output and productivity. The loan will be used for the purchase of raw materials and provide the investor with a 6% return per annum. 

Key Information:

 

This loan will go straight towards Gasan, and not enter a funding pool used for other projects. Working together with our local MFI partner in Azerbaijan, we are happy to open up this channel to support micro enterprise in rural Azerbaijani communities.


Gasan Mammadli lives in the Bina Khojavar village in the Masalli region in Azerbaijan, around 250km from Baku. He is engaged in the production of semi-finished products, namely frames for chairs, which he sells to large furniture shops in the area. Gasan already has all necessary machines and conditions for his enterprise. He procures raw materials such as wooden boards, dries them himself in his furnaces and expertly makes the frames.

 

Metrics:


If we assume Gasan can produce 2 cubic meters of raw material per month, he will earn 326AZN. After deducting 200AZN to cover expenses for living and his family, he can comfortably pay 126AZN per month to cover the loan repayment.

Thus issuing a loan of 1000AZN, equivalent to 588USD, for a period of 12 months with a 25% interest rate, Gasan will pay 95.04AZN back on a monthly basis which in principle is acceptable and comfortable for him. To minimise credit risk, 2 people will sign the relevant agreement as guarantors for the loan. The guarantors receive a monthly pension of 150 and 300AZN respectively, which will act as an additional guarantee for the loan granted to Gasan.

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