Vazha requested a loan from local financial institutions several times for a family business start-up, but without any success. His loan request was rejected all the time because of low income and the family’s poor living conditions. According to Credo estimations the family belongs to the subsistence poor category. His loan request was approved in the frames of new joint initiative of Kiva and Credo. The start-up loan program envisages the provision of business start-up and re-startup credits with soft conditions for rural poor who do not have access to credit products, being regarded as “high risk borrowers” because of low income.
With the requested loan Vazha wants to open a Georgian bread bakery. He owns a commercial space and will buy all the needed equipment. Vazha will bake himself normal Georgian bread and also flavored sweet bread which originally comes from Khashuri district. Vazha hopes the business will be profitable, as the location is very populous. The new business initiative, financed with the Kiva Start-up loan will significantly improve the living conditions of the family and Vazha will be able to provide for his children’s education in the future.
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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