The only source of the income for the family is monthly income from their agricultural business. They have a vineyard and a plot of land where nut trees are grown. They sell nuts and wine at the local open market. The average monthly income of the family is 350 laris. It is hardly enough for food for a five member family. According to Credo estimations, the family belongs to the vulnerable poor category.
Tengiz requested a loan from Credo to start up a new type of business. His loan request was approved in the framework 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 to rural poor, who do not have access to credit products being regarded as “high risk borrowers” because of low income.
With the received credit, Tengiz plans to open a bakery in his house. He will purchase necessary equipment (stove and dishes) and will start baking bread and candy products which will be sold in the village. This new business initiative, financed with a Kiva start-up loan, will significantly increase the income of the family. Their income will double and the family members will be able to improve their living conditions.
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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