David requested credit for start-up of a small business. A Kiva start-up loan was the only chance for him to get funds for financing the business venture. His loan request was approved in the framework of new joint initiative of Kiva and Credo. The start-up loan program envisages provision of business start-up and re-startup credits with soft conditions to country rural poor, who do not have access to credit products, being regarded as “high risk borrowers” because of extremely low income.
With the received credit David will purchase a truck. He will collect firewood in the forest and sell it in his and nearby villages. The villagers use it for heating their house during winter, as well as spring and fall months. According to David’s estimations the profit gained from this activity will equal on average 200 laris per month. The business will have a seasonal character and the income will reach its maximum in winter months.
As a result of the new business, initiated with the Kiva loan, the income of the family will significantly increase. David and Natia will use increased income for providing better living conditions for their children. In addition to the above-mentioned, the Kiva start-up loan will allow the family to access regular credit products available on country’s capital market in the future, in case of need.
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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