All the family members work at the local hotel. Zebur works as an administrator, his brother as a barmen, mother as a cleaner and father as a manager. The hotel is very small so the salaries are very small too. Their additional income is Zebur’s grandmothers’ monthly pension. The family's total income is hardly enough to cover monthly expenses.
Zebur 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. The Start-up loan program envisages provision of business start-up and re-startup credits with soft conditions to country rural poor, which do not have access to credit products, being regarded as “high risk borrowers” because of low income. With the received credit Zebur will purchase a car. The hotel where they all work doesn’t have a car to serve the clients, so he wants to buy a car and rent it to the hotel owners. This will bring him an additional monthly income. With the increased income Zebur will be able to help his family with covering their expenses.
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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