Eter has requested loans from local financial institutions several times for a family business start-up, but without any success. Her loan request was rejected all the time because of low income and poor living conditions.
Eter has a plot of agricultural land, where cucumbers and eggplants are grown. Harvested products are sold locally at the markets and she gets a small monthly income.
Eter requested a loan from Credo to start a family business. Eter 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 for 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 Eter will purchase all the needed equipment to open a Georgian bread bakery. She owns a commercial space which will be used as a bakery. After purchasing a dough mixer and flour, she will start baking the bread herself and sell it from the bakery. Her shop is in the populous area so the business will be successful and will significantly increase her income. With the increased income Eter wants to renovate her house in order 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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