On several occasions Vakhtang requested loans from local financial institutions for a family business start-up, but without any success. His loan requests were rejected each time because of his low income and the family’s poor living conditions.
The only source of the income for the family is from agricultural activities. In particular, they have a milking cow, whose milk is used in cheese products. They sell cheese locally. In addition, Vakhtang grows fruits and vegetables, but he barely grows enough to feed his family.
Vakhtang requested a loan from Credo to start a business. His loan request was approved as a new joint initiative between Kiva and Credo. With the loan proceeds, Vakhtang would like to purchase calves; after purchasing the calves, he will raise them and fatten them up for future sales. He would also like to use a portion of the loan proceeds to grow maize, which he will sell after the harvest. The Kiva/Credo start-up loan program is designed to provide funding and credit to the country's rural poor, who do not usually have access to credit products because they are regarded as high-risk borrowers due to their low income. Vakhtang is confident that these new business ventures, financed by Kiva/Credo, will enable him to significantly improve his family's living conditions.
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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