A loan of $1,000 helped to begin a clothes trading business.

Lela's story

Lela, age 42, lives in the small village of Telavi District with her husband, their young son, and her parents-in-law. Lela’s husband works in transportation and gets a small monthly income. Her parents-in-law are provided with a small retirement pension. Though they pool their income, it is hardly enough to provide sufficient food for the family. According to Credo estimations, the family belongs to the subsistence poor category.

Lela would like to start a clothes trading business. She is experienced in this field as she was involved in a trading business three years ago. She has requested loans from local financial institutions several times to obtain family business start-up capital, but without success. Her loan request was rejected each time because of her low income and the family’s poor living conditions.

Lela has now requested a loan from Credo in order to start up her clothes trading business, and she has been approved for a loan within the framework of a 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 because they are regarded as “high risk borrowers” due to their low income.

With her credit, Lela will begin trading in clothing items. She plans to go to Turkey, where she will purchase clothing from wholesalers, and then she will resell these items among her local villagers at a higher price. This new business initiative, financed with the Kiva start-up loan, will significantly improve the living conditions of the family.

Loan details

Lenders and lending teams

Loan details