Albert is 46 years old. He lives in a small village in Gori District with his wife and three children. Albert applied for loans from local financial institutions several times for a family business start-up, but without any success. His loan requests were always rejected, because of his low income and the family’s poor living conditions. Albert trades in nails. The income is hardly enough to provide food for the family. According to Credo’s evaluation, the family belongs to the “subsistence poor” category. Albert applied for a loan from Credo for a start-up family business. Albert has now been approved for the loan within the framework of the new joint initiative of Kiva and Credo. The start-up loan program envisages providing business start-up and re-startup credits 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 his credit, Albert and his wife will begin trading in fruits and vegetables. He plans to purchase fruits and vegetables from wholesalers and then resell them at higher prices. He will be able to increase the family income. Part of the profit will be reinvested in the same business, and he will use another part to provide a better future for his children. 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 Credo
LLC 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.