Pedro Antonio H. lives in the city of Medellín where for 28 years he has been a peddlar throughout the streets in the city center. Pedro learned his trade very well and has dedicated his life to selling sweets, cigarettes and chewing gum. He works tirelessly from 8:00 a.m. to 7:00 p.m. With his earnings he is able to support his family and thanks to his job in the street he was able to meet his wife, who is also a peddlar, with whom he has four children.
Since Pedro wants to expand his business to offer a wider variety of products he decided to ask for a loan to buy assorted sweets. He plans to use his earnings to improve his lifestyle and carry out some household repairs his home is in need of.
Pedro Antonio H. vive en la ciudad de Medellín y hace 28 años trabaja como vendedor ambulante por las calles del centro de esta ciudad. Pedro aprendió empíricamente de este oficio y le ha dedicado su vida al comercio informal de dulces, cigarrillos y chicles trabajando largas jornadas sin descansos desde las 8 am hasta las 7pm. Con este trabajo ha sostenido a su familia y gracias a su negocio en la calle fue que conoció a su esposa con la que tiene 4 hijos y quien también es vendedora ambulante.
Como Pedro quiere crecer su negocio y poder tener más surtido de productos, ha decidido acceder a un préstamo con el fin de capitalizarse. Las ganancias que obtenga le servirán para mejorar sus condiciones de vida y arreglar su casa la cual se encuentra en muy mal estado actualmente.
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.