Ekaterine’s father is an artisan. He is working in construction and on house renovations on private orders. He earns about 250 GEL (Georgian Lari) per month, which is the only source of living for the family, and it’s rarely enough for food for them.
Ekaterine requested a loan from Credo to start up a family business. Ekaterine 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 her credit, Ekaterine will start trading in clothing. She will purchase clothes from Turkey at the wholesale price, bring them to her district and sell them with the price markup among the villagers. With this business, Ekaterine will earn a good profit, and she will be able to improve the family's living conditions. Part of the profit, she will use for reinvesting in the same business and try to expand it more.
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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