Nino requested a loan from local financial institutions several times for a family business start-up, but without any success. Her loan request was rejected every time because of low income and the family's poor living conditions.
The source of income for the family is an agricultural business. They have 7 cows and produce cheese which is sold locally. Besides that, the family cultivates a plot of land where nuts are grown. They own a vineyard as well. The harvested products are sold at the local open market, but the income is hardly enough for food and every day expenses for an eight-person family.
Nino requested a loan from Credo, Kiva's field partner, to start up a family business and build a greenhouse. Her loan request was approved in the framework of a new joint initiative of Kiva and Credo. The start-up loan program envisages a provision of business start-up and re-startup credits with soft conditions to vulnurable poor, who do not have access to credit products, as they're regarded as "high risk borrowers" because of low income.
With the loan, Nino will purchase all the building materials for the greenhouse. After the greenhouse is built properly, Nino will grow greens and various types of vegetables. The harvested products will be sold for a good price. The new business initiative, financed with the Kiva start-up loan, will significantly increase the family's income and all members will 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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