Paata is an artisan. He is working for private orders in construction and on house renovations to get a small monthly salary. This is the only income for Paata, and it's not enough to cover his monthly expenses.
Paata requested a loan from Credo to start up a family business. Paata 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-startup 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 his credit Paata will purchase maize, haricot and tomato seeds and fertilizer. As he already owns an agricultural plot of land, Paata wants to cultivate it and plant all the products. The fertilizer will help him to get a good harvest, which will be sold locally at the markets. Part of the profit will be used in the same field, in order to expand his agricultural business. Paata’s income will significantly increase, and he will be able to have better 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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Success!! The loan was 100% repaid