Madona has been renting out a commercial space, which is the only source of income for her family. It is hardly enough for food for the family. According to Credo estimations the family belongs to the subsistence poor category.
Madona requested a loan from Credo to start-up a family business. She has now been approved for a loan within the framework of a new joint initiative between Kiva and Credo. The start-up loan program envisages provisioning business start-ups and re-startups with credit 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 this credit, Madona will open a used clothing shop. She has space on the first floor of her house, where she will open a shop for used clothing. This will increase the income of their household. This new business initiative, financed with the Kiva Start-up loan, will significantly improve the living conditions for 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 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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