Anna has her own business. She is trading second-hand clothes. She is renting a small commercial space, purchases clothes at a wholesale price and sells them from her shop with a price mark-up to earn a small monthly income.
Anna requested a loan from Credo to start-up a family business. Anna has now been approved for a loan within the framework of the new joint initiative of Kiva and Credo. The start-up loan program envisages provision of business start-up and re-start-up credits with soft conditions to rural poor people, who do not have access to credit products. These rural poor people are regarded as “high risk borrowers” because of their low income.
With her credit Anna will purchase a stock of second hand clothes for her shop. She wants to expand the business and have a better choice to offer to the clients. As Anna is already experienced in this field, she knows what type of clothes to buy and what is more consumable. This will increase the numbers of clients and sales so Anna will have more profit. Part of the profit she will use for reinvesting in her business and another part for covering the family's monthly expenses. 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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