Eldar is 25 years old. He lives in a small village in Zestaponi District with his wife and two infant children. Eldar requested loans from local financial institutions several times for a family business start-up, but without any success. His loan requests were always rejected, because of his low income and the family’s poor living conditions. The only source of the income for the family is from the agricultural activities. In particular, they have two milking cows, whose milk is used in cheese production. They sell cheese at local markets. Besides that, they have a one-hectare plot of land where maize is grown. It barely provides enough food for the family. According to Credo’s evaluation, the family belongs to the “subsistence poor” category. Eldar applied for a loan from Credo to start up a family business. He 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 his credit, Eldar will buy a minibus. After buying the minibus, he will begin trading in calves. He will buy calves at a good price and then transport them to resell at higher prices in different villages. This will increase the income of his family. The new business initiative, financed with the Kiva start-up loan, will significantly improve the living conditions of the family.
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.