A loan of $1,000 helped to rent a space and open a shoe shop.

Malkhaz's story

Malkhaz is 40 years old. He lives in the village of Klde, Akhaltsikhe district, with his wife, Shorena, and three children who are going to school. Malkhaz requested a loan from local financial institutions several times for family business start-up, but without any success. His loan request was rejected all the time because of low income and his family’s poor living conditions.

The main source of income for the family is from agricultural activities. They own a plot of land. Malkhaz cultivates the land and plants potatoes and maize. Harvested products are sold locally at the markets and the family gets a small monthly income.

Malkhaz requested loan from Credo to start up a family business. His loan request was approved in the framework of a new joint initiative of Kiva and Credo. This start-up loan program envisages provision of business start-up and re-startup credits with soft conditions to country rural poor, who do not have access to credit products, being regarded as “high risk borrowers” because of low income.

With the received credit Malkhaz wants to open a shoe shop. He will rent a space in Akhaltsikhe's local market and purchase shoes at the wholesale price. Malkhaz will be selling shoes himself with a price mark up and earn additional income. He wants to reinvest the profit and develop his new business to have more income. More income will help Malkhaz to have better living conditions for his family and to provide future education for his children.

Loan details

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Loan details