Several times, Larisa has requested loans from local financial institutions for her trading business start-up, but without any success. Her loan request was rejected each time because of low income and the lack of experience in her new business. Income and experience are usually demanded by local credit providers.
The only source of income for the family is the small monthly income earned by Larisa, who is involved in a small-scale trading business. She buys clothing, dishes, cosmetics and different kinds of household items in Turkey and resells these items to nearby villages.
Larisa requested a loan from Credo to expand her business. Her loan request was approved in the framework of a new joint initiative between Kiva and Credo. The start-up loan program envisages the provision of business start-up and re-startup credits with soft conditions to the country's rural poor. The rural poor do not have access to credit products, being regarded as “high risk borrowers” because of low income.
Larisa will purchase more clothing and household items in Turkey at wholesale prices and resell the items for a profit. It will be hard work for Larisa, but according to estimations, her business will be profitable and will increase the income of the family. The increased profit will be reinvested in clothing trading to increase her stock and sales volume.
The family members will be able to improve their living conditions. Larisa awaits your support.
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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