The main source of the income for the family is from agricultural activities. They have two milk cows, a vineyard and plot of land, where different vegetables are grown. Harvested products with the dairy products are sold at the local markets and among the villagers. Family additional income is Akaki’s grandparent’s monthly pensions which totally is 250 Gel.
Akaki requested loan from Credo to start-up family business. Akaki 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 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 Akaki will purchase a car from abroad at the low cost. He will transport it to Georgia and sell with the price mark up to earn a profit. Part of the profit he will reinvest in the same field to continue working with the car sales. Another part he will add to the family monthly income and 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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