Levan requested loans from local financial institutions several times for a start-up greenhouse, but without any success. His loan request was rejected all the time, because of low income and the family’s poor living conditions.
The average monthly income of the family is 500 GEL. According to Credo estimations, the family belongs to the subsistence poor category.
Levan requested a loan from Credo to start a greenhouse. His loan request was approved in the frame of 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 the 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 Levan will purchase materials for greenhouse construction. He will construct a greenhouse and grow cucumbers, tomatoes and greens during the whole year. It will increase the income of the family and their income won’t have a seasonal character any more. The increased income will allow the family members to improve their living conditions, first of all their two children.
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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Success!! The loan was 100% repaid