Akbar has a tractor. He is working locally on a monthly salary. The family is renting a plot of agricultural land, where broom trees are grown. From these trees the family is making brooms and selling them at the local markets.
Akbar requested a loan from Credo to start up a family business. Akbar 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 Akbar will purchase calves. He will raise the calves and sell them at a higher price to earn an additional income for the family. Akbar is a very hardworking man. He wants to expand his agriculture and for this he will reinvest part of the profit in the same field. Another part Akbar will use for improving the family's 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 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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