The heavy rains that have fallen in Colombia have become a great obstacle for Hernando, a 57-year-old entrepreneur who has lived his entire life in the countryside and has learned how to live off the land because on land his boss passed on to him he grows blackberries and ‘lulos’ (a high altitude subtropical fruit common to the Andean regions of Colombia, Ecuador, and Peru also known as ‘naranjillo’) in order to earn extra income that will make it possible for him to improve his quality of life and provide a better future for his three children because, although he’s separated, he is conscious of the obligation he has toward his family.
Hernando needs a loan to buy seeds and manure and to be able to fumigate the crops to improve production and offer good quality products and thus to obtain higher profits.
Las fuertes lluvias que se han presentado en Colombia se han convertido en un gran obstáculo para Hernando, un emprendedor de 57 años de edad que ha vivido toda su vida en el campo y ha aprendido a sacarle provecho a la tierra, pues en el espació que le cedió su jefe cultiva moras y lulos para obtener ingresos adicionales que le permitan mejorar su calidad de vida y ofrecerle un mejor futuro a sus tres hijos, pues aunque es separado es consciente de la obligación que tiene con su familia.
Hernando necesita de un préstamo para comprar semillas, abonos y así poder fumigar su cultivo para mejorar la producción y ofrecer productos de buena calidad y obtener mayores ganancias.
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.