Dali’s only source of the income is from her trading business. She is purchasing clothes from the big market in the capital city of Georgia, Tbilisi, and selling them at the local market where she rents a counter. Even though she is selling the clothes herself, the profit is still very small as the expenses are high and it’s very hard for her to cover her monthly expenses.
Dali requested loan from Credo to start a family business. Dali has now been approved for a loan within the framework of the new joint initiative between Kiva and Credo. The start-up loan program envisages the provision of business start-up and re-startup credits with 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 Dali will purchase a car. She wants to start trading vegetables. In front of her house Dali has a small space to put the counter and trade vegetables. She will purchase the products from the big market in the capital city at the wholesale price and sell them with the price marked up to earn additional income.
Dali will use part of her profits for reinvesting and expanding her business, and the other part to cover her monthly expenses and 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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