Liana is 41 years old. She lives alone in Zerti village, Gori district. Liana applied for loans from local financial institutions several times for a family business start-up, but without any success. Her loan applications were rejected all the time, because of her low income and poor living conditions. Liana owns a small plot of land. She grows vegetables and sells them at the local markets to earn a small monthly income, which is her only source of income. Liana has applied for a loan from Credo to start up a family business. Liana 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 on 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, Liana will start trading in clothes. She owns a small commercial space which will be used as a shop. Liana will buy men’s and women’s clothes from the big market at wholesale prices and sell them in her shop with a price markup. This will give her an opportunity to earn a better income and develop a new business. With the increased income, Liana will be able to provide better living conditions for herself.
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 Credo
LLC 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.