Nino is from the small town of Lagodekhi. She is 48 years old, married, and lives with her husband, son and a daughter-in-law. Nino requested a loan from local financial institutions several times to start a trading business, but without any success. Her loan request was rejected all the time because of her low income and the lack of experience in her job, which is usually demanded by the local credit providers. The only source for the family is the small monthly salary earned by Nino’s husband working as a cook. The income is hardly enough for the four-member family. Nino’s loan request was approved in the framework of a new joint initiative between Kiva and Credo. The start-up loan program envisages provision of business start-up and re-startup 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. With the loan, Nino will purchase clothing and bed clothing at wholesale prices and resell them in her town and nearby villages for a profit. It will be hard work for Nino, but according to estimations, her business will be profitable and increase the income of the family. The increased profit will be reinvested in her trading business to increase her stock and sales volume. The family members will be able to increase their spending to satisfy their daily needs in order 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 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.