Manana is 42 years old, a widow and she lives with two children in Bolnisi district. Several times, she has requested loans from local financial institutions for her trading business start-up without success. Her loan requests were rejected each time because of low income and the family’s poor living conditions. The only source of income for the family is the small monthly amount earned by Manana’s son, who has a horse and serves local farmers in land cultivation and transportation. Manana requested a loan from Credo to start a clothing sales business. Her loan request was approved in the framework of a new joint initiative between Kiva and Credo. The start-up loan program envisions the provisions for business start-ups and re-startup credits with reasonable conditions for the country's rural poor, who do not have access to credit products. They are regarded as “high-risk borrowers” because of low income. Manana will purchase clothes and bedding at wholesale prices and resell them in her district for a profit. It will be hard work for Manana, but according to her estimates, her business will be profitable and will increase the income of the family. The increased profit will be reinvested in her clothing trading business to increase her stock and sales volume. Her family will be able to increase their spending to satisfy their daily needs and 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 Credo
LLC 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.