Alika has recently returned from the Ukraine, where he worked as a cook. Now, he plans to start up a café. The local credit providers have rejected his loan request because of low income. His loan request was approved in the frame of a new joint initiative of Kiva and Credo.
The start-up loan program envisages the provisions of business start-ups and re-startup credits with soft conditions to country rural poor, who do not have access to credit products, because they are regarded as “high risk borrowers” because of low income.
With the increased credit, Alika will purchase a cash desk, kitchen appliances and stocks of products that will be used for cooking meals. According to Alika’s estimations, his project will be profitable, and he will attract many customers. As a result of the new business initiative, the income of the family will increase and their living conditions will improve. In addition to the above mentioned, in case of need in the future, the family will have enough income to access regular credit products available on the country’s capital market.
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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