Aside from his grandmother's pension and his mother's teaching salary, the only source of income for the family is their agricultural activities. In particular, they have two milking cows, whose milk is used in cheese production. Besides, they have a plot of agricultural land, where 250 nut trees are grown. Avtandil sells the harvested nuts and the cheese locally, at good prices. But the family's income is hardly enough to provide food for the five-member family. According to Credo estimations, the family belongs to the subsistence poor category.
Recently, Avtandil requested a loan from Credo to start up a family business. Credo approved his loan request, in the frame of a new joint initiative of Kiva and Credo. The Start-up loan program envisages provision of business start-up and restart-up credit, with soft conditions, to the country's rural poor people, who do not have access to other credit products, being regarded as “high risk borrowers” because of low income.
With the received credit, Avtandil will trade in pottery. He plans to purchase pottery from the wholesalers and then resell it at higher prices. This will increase the income of the family. The new business initiative, financed with the Kiva Start-up loan, will significantly improve the living conditions of the family.
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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