Ramaz is 44 years old. He lives alone in Khikhani village, in the Marneuli district. Ramaz has requested for loans from local financial institutions several times for a family business start-up, but without any success. His loan requests were rejected all the time, because of low income and his family’s poor living conditions. Ramaz has a coal business. He has his own coal pits, where he produces coal and sells it at the local markets to earn a monthly income. Ramaz has requested a loan from Credo to start-up a family business. Ramaz has now been approved for a loan within the framework of the 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 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, Ramaz will renovate his shed and purchase calves. He wants to start farming. After raising the calves, he will sell them at a better price and earn good profit. Part of the profit will be used for reinvesting into the same field while another part is for improving his 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 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.