Jesús Octavio S. has been living in Medellín for 15 years. He used to work as an electrician in the town of Puerto Berrío, several hours from the city. However, he decided to try his luck in the city in order to improve his living conditions.
Thanks to the help of a friend, Jesús started out selling chewing gum and cigarettes in the street. However, he experienced a lot of problems because the authorities didn't want to provide him with the permit he needed to make his sales. After a number of attempts, he managed to get his permit. Now he would like to inject capital into his business and stock up with more products to offer his customers.
Jesús Octavio S. vive hace 15 años en Medellín. Él trabajaba como electricista en el municipio de Puerto Berrío a varias horas de la ciudad, sin embargo decidió probar suerte en la ciudad para mejorar sus condiciones de vida.
Gracias a la ayuda de un amigo comenzó a vender chicles y cigarrillos en la calle, pero tenía muchos problemas porque las autoridades no querían darle el permiso para realizar sus ventas. Luego de algunos intentos logró conseguir el permiso; ahora quiere capitalizarse y tener más productos para ofrecerle a sus clientes.
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.