Hector is proud to be a farmer. The land has helped him cultivate lettuce and today that is his source of support. There is a lack of work opportunities and the need to cover his family’s expenses motivated him to invent himself a living, as he says.
For the past year, Hector has cultivated lettuce on a small plot of land. He needs a loan to purchase agricultural materials that will help him improve production and to have good quality produce to sell in the markets. This will increase his sales and it will help improve his quality of life.
Hector se siente orgullosos de ser campesino, pues el campo le ha permitido cultivar las lechugas que hoy en día son su fuente de sustento, pues la falta de oportunidades laborales y la necesidad de cubrir los gastos de la familia, lo impulsaron para inventarse la vida como él mismo lo dice.
Desde hace un año, Hector cultiva las lechugas en su pedacito de tierra, actualmente necesita de un préstamo para comprar insumos agrícolas que le permitan mejorar su producción para sacar un producto de buena calidad que lo posicione en el mercado y le permita incrementar sus ventas para mejorar su calidad de vida.
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.