The only source of income for the family is from the agricultural activities. In particular, they have a hectare of agricultural land where different kinds of vegetables are grown. Besides, they have 2 pigs. It is hardly enough to provide food for the family. According to Credo's estimations, the family belongs to the subsistence poor category.
Mamuka requested a loan from Credo to start-up a family business. His loan request was approved in the frames of new joint initiative of Kiva and Credo. This start-up loan program seeks to provide 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 their low income. With the received credit ,Mamuka will open a bakery. He will purchase all the equipment needed to bake bread, and building materials to build a bakery. After the bakery is built, Mamuka and his wife will bake bread and sell it locally. This will increase the income of the family. This 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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