Nowadays, the family is out of sources of income, except for the retirement pensions of Vaghinak’s parents. The pensions total 250 Laris (GEL) per month. It is hardly enough for food, for the seven-member family. According to Credo estimations, the family belongs to the subsistence poor category.
Recently, Vaghinak requested a loan from Credo to start up a family business. Vaghinak 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 restart-up credit, with soft conditions, to rural poor people, who do not have access to ordinary credit products. These rural poor people are regarded as “high risk borrowers” because of their low income. With his credit Vaghinak will purchase a car and serve local people as a taxi driver. This will increase the income of the family. 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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Success!! The loan was 100% repaid