In the back of Antonio José B.'s humble home is a designated space for making arepas. Although he lives about 15 minutes away from Santa Barbara, in the southeast of Antioquia, this does not keep him from selling his product daily in the city and to his neighbors.
At 63 years old, tired of working sporadically as an employee and having little income to support his wife and cover household expenses, he decided to go out on his own to make his living. Currently, his orders have increased which is why he needs a loan to build an efficient stove that will allow him to respond to his customers and to improve his income.
En la parte de atrás de la humilde casa de Antonio José B. se encuentra un espacio destinado a la producción de arepas y aunque vive a unos 15 minutos de Santa Bárbara al suroeste de Antioquia, esto no es impedimento para que su producción sea vendida diariamente en el municipio y a sus vecinos.
A sus 63 años de edad cansado de trabajar como empleado esporádicamente y con pocos ingresos para sostener a su esposa y cubrir los gastos del hogar, desde hace algún tiempo decidió enfrentarse solo para ganarse la vida. Actualmente se ha incrmentado el número de pedidos por lo que necesita de un préstamo para construir una estufa eficiente que le permita responderle a sus clientes y mejorar sus ingresos.
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.