Irma is 45 years old. She lives in Kutaisi, West Georgia, with her sister and 23-year-old son. Irma requested loans from local financial institutions several times for a family business start-up, but without any success. Her loan request was rejected all the time because of low income and the family’s poor living conditions.
Irma and her sister are working at the local market selling flowers, and they get a small monthly salary which is rarely enough for food for the family. According to Credo estimations the family belongs to the subsistence poor category.
Irma requested a loan from Credo to start up a family business. Her loan request was approved within the framework of a 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 to the country rural poor who do not have access to credit products, being regarded as “high risk borrowers” because of their low income. With the received credit, Irma will rent a counter at the local market and purchase flowers at wholesale prices. She and her sister will then sell them with a price markup. The profit will be used for reinvesting and buying more flowers. As they are both experienced in this field, Irma hopes the business will be successful. The new business initiative, financed with the Kiva Start-up loan, will significantly improve the living conditions of the family and give them a chance to have a better life.
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.