Several times, Tea has requested loans from local financial institutions in order to start up her clothing trading business, but without any success. Her loan requests were rejected because of lack of experience in the business, which is usually demanded by local financial institutions.
Her loan request has now been approved in the framework of a new joint initiative between Kiva and Credo. This start-up loan program envisages the provision of business start-up and re-start-up credit, with soft conditions to country's rural poor, who do not have access to credit products, being regarded as 'high-risk borrowers' because of low income.
With the received credit, Tea plans to purchase clothing from wholesalers in Turkey and then sell these items from her house. After investing the funds in her business, Tea hopes to generate additional revenue and invest the profits to further develop her business.
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 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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