The only source of income for the family is small scale agricultural activities. They have a plot of land, where they grow vegetables. Sopio sells harvested products on the local open market. Their average monthly income totals 500 Laris. According to Credo estimations, the family belongs to the subsistence poor category.
Sopio requested a loan from Credo to start-up a trade business. She will purchase a car, take clothing and family goods from Tbilisi (capital city of the country) wholesale markets and sell them in her and nearby villages with a price mark-up. Her loan request was approved in the frame of a new joint initiative of Kiva and Credo. The start-up loan program envisages the provision of business start-up and re-start-up credits with soft conditions to the country's rural poor, who do not have access to credit products, being regarded as “high risk borrowers” because of low income. The new business initiative will increase the monthly income of the family by 200 laris and the business won’t have a seasonal character. The family 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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