Nine years ago, Nelly de Dios M. I. set up her vegetable stall with a friend. Every day they face competition from another 128 businesses who also sell this type of product. Another difficulty that they have faced is the fact that during the winter season their sales fall and product prices increase.
Nelly currently needs a loan to buy merchandise, especially recently-harvested produce, so that she can stock her business.
Desde hace 9 años, Nelly de Dios M. I. inició su legumbrería en compañía de un amigo, es así como día a día se enfrentan con la competencia de otros 128 negocios que al igual que ellos se dedican a vender este tipo de productos, otro tipo de dificultad a la que se ven enfrentados es la temporada de invierno pues además de que disminuyen las ventas, los precios de los productos se incrementan.
Actualmente Nelly necesita de un préstamo para comprar mercancía especialmente de cosecha y así abastecerse.
This loan is structured on Kiva as a bullet loan, which means a single payment is required at the end of the loan term. By Colombian law, Kiva's partner Interactuar is required to offer borrowers loans with a variable interest rate that fluctuates with the market rate. Because fixed monthly payments are applied first to interest and then to principal, Interactuar is unable to predict upfront what portion of each repayment would go towards the loan principal. This creates a challenge with Kiva's system, which doesn't allow for unpredictable principal payments, and can result in some Interactuar clients appearing falsely delinquent. To remedy this, the loan has an end-of-term repayment plan on Kiva, but the borrower will continue scheduled monthly repayments to Interactuar, who will then pass along the principal amount to Kiva lenders. This means that you may see repayments made on this loan throughout the repayment term, as opposed to receiving repayment in full at the end of the loan term.