Alex used to run a dairy farm. He had cows. The family was producing cheese and selling it. Alex sold the cows because he needed cash for covering medical expenses related to the illness of his child. Now Alex requests credit for restarting the dairy farm. His loan request was approved in the frames of a new joint initiative of Kiva and Credo. The start-up loan program envisages provisions of business start-up and re-startup credits with soft conditions to the country's rural poor, which do not have access to credit products and are regarded as “high risk borrowers” because of low income. With the received credit, Alex will start up a dairy farm. He will purchase four calves and grow them. Calves will be placed in old cattle sheds, located in Alex’s yard. After a half year he will start production of cheese and sell it on the local market to dairy products retailers. The income of the family will increase by 500 – 600 Laris, which will mean a 100 – 120% increase. The living conditions of the family will significantly improve and the family will have enough income to access regular credit products available in country’s capital market, in needed.
More information about this loan
This loan is part of Credo's startup loan program targeting particularly vulnerable clients who live at the subsistence level and have been unable to obtain credit due to lack of income from an existing business. This program offers them a longer repayment term and an annual interest rate that is 5% lower than the standard interest rate. By funding this loan, you are supporting a program that gives borrowers a second chance to start and grow small businesses. This has the potential to alleviate the effects of poverty, significantly improving borrowers' incomes and their families' quality of life. Learn more about Credo's startup loan program on the Kiva Blog.
About LLC Micro Finance Organization CredoLLC Credo (Credo) is a microfinance organization in Georgia that provides sustainable credit services to alleviate poverty in rural areas, including business loans, agriculture loans, household loans, crop insurance and more. Kiva lenders’ funds are used to help the organization expand its outreach to even more entrepreneurs, farmers and households in remote areas.
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