The only source of the income for the family is Gogita’s salary. He works as shepherd in the village and gets 150 Laris per month. It is hardly enough on food for 3 children. According to Credo estimations the family belongs to the vulnerable poor category.
Eka has requested a Credo loan for the start-up of an agricultural business. Her loan request was approved in the frames of a 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 for the country's rural poor, who do not have access to credit products, being regarded as “high risk borrowers” because of low income.
Eka will place the purchased calves in an old cattle-shed located in the family yard. She will raise them and, after 12 months, will start milking them. Eka will start production of cheese and she will sell it at the open market of the nearby town. As a result of the new business initiative, implemented with the assistance of Kiva, the income of the family will increase by 200%. Eka and Gogita will be able to create better living conditions for their children and themselves.
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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