Mamuka has a 0.5-hectare plot of agricultural land, where vegetables and citrus are grown. He sells the harvested products at local markets. Mamuka’s mother works as a cook at a local restaurant, and gets monthly income. They earn hardly enough to have food for the family. According to Credo estimations, the family belongs to the subsistence poor category.
Mamuka requested a loan from Credo to start up a family business. Mamuka 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 credits, with soft conditions, to rural poor people who do not have access to other credit products. These rural poor people are regarded as “high risk borrowers” because of their low income.
With his credit, Mamuka will open a local grocery store. This will increase the income of the family. Part of the new income will be reinvested in the same business, and they will use another part to improve their 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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