The project

Please note: 1st principal repayment after 12 months instead of 6 months. However, the interest payments start after 6 months.
 

Retail shop owner Nargiza applied for a loan from Vodiy in 2021. With the working capital she was able to improve her inventory. "Securing financing from Vodiy has been an important step in expanding my business volume and making my business sustainable. I am very pleased with our collaboration and deeply appreciative of their commitment to bolstering female entrepreneurship in the region, as well as their confidence in my enterprise," shares Nargiza.

As a micro-entrepreneur in Uzbekistan it is challenging to get access to financing. Many entrepreneurs work in the informal economy and as a result, can’t present official documents of their businesses to apply for a loan from a traditional bank. 

Microfinance institution Vodiy recognizes that the entrepreneurial spirit among the population is a crucial factor in driving additional income and improving the general well-being of the people. By providing finance to these underserved borrowers, Vodiy empowers them to expand their businesses and achieve financial stability.
 

What social return could your investment generate? 

With their projects on Lendahand, Vodiy will be able to provide many more small entrepreneurs with a loan. A loan from Lendahand investors will fuel the growth of its loan portfolio and expand its reach. The funds will be used to finance new branches and extend microloans to 14,543 borrowers from the microfinance sector. By focusing on this target niche, Vodiy aims to make a significant social impact, particularly benefiting micro-business clients such as women entrepreneurs, individual entrepreneurs, and craftsmen who have no other sources of finance.

Women traditionally encounter even more difficulty in getting a loan. This is why Vodiy is committed to empowering female entrepreneurs and bridging the gender gap in access to financing.

What financial return could your investment generate?

• The annual interest rate is 6%
• The maturity of the loan is 24 months
• This project has a 6-month grace period for the principal. This means that you will start receiving the repayment of the principal of your loan in month 12. However, you will start generating interest on the outstanding amount of your investment from the first month on, which you will receive every 6 months.
• This is a local currency (LCY) project, but the exchange risk is covered by our partner TCX. Using local currency for loans in emerging markets helps business owners avoid losses from unpredictable currency changes. Please read our blog and FAQ for further information.

Example for an investment of 1,000 euros:

• Since there is a 6-month grace period, a total of €60 in interest will be generated in the first year (6% of 1,000).
• In the first installment (month 6), you will receive €30 in interest and €0 of the principal. In total, you will receive €30.
• In the second installment (month 12), you will receive another €30 in interest plus the corresponding portion of the principal, in this case, €333.33. In total, you will receive €363.33.
• In the third installment (month 18), you will receive €333.33 of principal plus the generated interest (on the outstanding principal), which is €20. In total, you will receive €353.33.
• In the last installment (month 24), you will receive the remaining portion of your principal (€ 333.33) plus the final interest (on the outstanding principal), which is €10. In total, you will receive €343.33.

Total amount you will receive at the end of the term: €1,090 

The story of Vodiy

Vodiy was established in 2014 in the rural Buvayda district of Uzbekistan.Starting with assets of USD 1.0 million, the microfinance company has since grown exponentially, now holding USD 19.0 million in assets. The company operates five branches across different regions of Uzbekistan and currently employs a dedicated staff of 106 people. 

With a mission to empower microentrepreneurs, Vodiy provides vital microfinance services to MSMEs with limited access to traditional banking. They envision a future of financial stability, extensive branch networks, and a strong corporate culture focused on environmental and social responsibility. Through collaboration with foreign partners, they strive to implement global best practices, fueling economic growth and creating opportunities for microentrepreneurs throughout Uzbekistan. 
 

Vodiy in numbers

• Founded in 2014
• 5 branches across different regions of Uzbekistan
• 106 employees
• Over 60,829 loans issued
• Microfinanced 12,180 borrowers, of whom 2,702 are female