The family’s only source of income is from agricultural activities. In particular, they have two milking cows, whose milk is used in dairy products. They also have a plot of land, where maize, haricots and potatoes are grown. They sell the harvested products locally and hardly make enough for food for the family. According to Credo, the family belongs in the “subsistence poor” category.
Within the framework of a new joint initiative of Kiva and Credo, Ana has been approved for a loan to start a family business. This start-up loan program envisages providing business start-up and restart-up credits with soft conditions to the rural poor who do not have access to credit. The rural poor are regarded as high-risk borrowers because of their low incomes.
With this loan, Ana will purchase a car. Her son will help her drive to different villages to trade with dairy products and vegetables. With a car, they will increase their income, as they will be able to transport more products.
This new business initiative, financed with a Kiva start-up loan, will significantly improve the family’s 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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