From 3:00 in the morning Hector Hernán T. M. and his family group are up to begin making mazamorra, a traditional product in Antioquia-Colombia. It has become the source of income for this family. After the laborious production of the mazamorra, Héctor goes out to offer the product in the streets of Puerto Berrío, where he is known for being a good cook. At present, he needs a loan to refurbish the production area.
Desde las 3:00 de la mañana Hector Hernán T. M. y su grupo familiar están en pie para iniciar con la elaboración de la mazamorra, producto típico de Antioquia-Colombia, que se convirtió en la fuente de sustento para esta familia.
Después de la dispendiosa elaboración de la mazamorra, Héctor sale a ofrecer el producto por las calles de Puerto Berrío donde es conocido por su buena sazón. Actualmente necesita de un préstamo para realizar algunas adecuaciones en el lugar de producción.
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.