At the moment, Lado’s truck is out of order and needs a serious renovation. He has requested a credit for purchasing spare parts for his truck. His loan request was approved in the frames of a new joint initiative of Kiva and Credo. The start-up loan program provides business start-up and restart-up credits with soft conditions to the country's rural poor, who do not have access to credit products, because they are regarded as “high-risk borrowers” due to their low income. With the received credit, Lado will purchase spare parts for his truck and change the damaged ones. Afterwards, Lado will be able to re-start his transportation service and receive income, which will then be used for financing the education of his children as well as improving the living conditions for his family. The income of the family will increase by 300 – 400 Laris, which will mean a 100% – 125% increase. In addition to the above mentioned, the family will have enough income to access regular credit products that are available on the country’s capital market in case they need them.
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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