Jaba requested a loan from local financial institutions several times for a family business start-up, but without any success. His loan request was rejected all the time because of low income and family’s poor living conditions.
The main source of the income for the family is from agricultural activities. In particular, they have a milk cow and a plot of agricultural land. They milk the cow to make dairy products. On the land mandarin and nut trees are grown. Harvested products with the dairy products are sold locally at the markets. The family total income is rarely enough to cover their monthly expenses.
Jaba requested a loan from Credo to start 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 the country's rural poor, who do not have access to credit products, being regarded as “high risk borrowers” because of low income.
With the received credit, Jaba will open a car-washing service. He will purchase the essential car-washing equipment and vacuum cleaners for starting the business. In order to decrease the expense and not to pay salary to somebody else, Jaba will work himself to wash the cars. This will significantly increase the profit and he will use part of it to reinvest and develop his business. Another part will be used to 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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