Lamara requested a loan 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 her low income and the family’s poor living conditions.
The family is involved in agricultural activities. In particular, they have a pig and 1.6 hectares of agricultural land, where 100 nut trees are grown. Besides, her son works as an artisan and gets a small income. It is hardly enough for food for the family. According to Credo estimations, the family belongs to the subsistence poor category.
Lamara requested a loan from Credo to start a family business. Her loan request was approved in the frames of new joint initiative of Kiva and Credo. The start-up loan program envisages provision of business start-up and re-startup credits with soft conditions to country's rural poor, who do not have access to credit products, being regarded as “high risk borrowers” because of their low incomes. With the received credit, Lamara will purchase a milking cow. After purchasing the cow, she will be able to produce dairy products for selling. 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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