Gloria started her dressmaking business twenty-five years ago. She started out doing alterations for her customers but later on decided to start manufacturing items for third parties to improve her income and contribute to household expenses. She currently needs a loan to buy thread and fabric remnants to undertake underwear production to thus improve her sales.
Hace 25 años Gloria inició con su negocio de confecciones, inicialmente empezó haciendo reformas de prendas a sus clientes y después decidió confeccionar a terceros para mejorar sus ingresos y contribuir al cubrimiento de los gastos del hogar.
Actualmente necesita de un préstamo para comprar hilos y retazos para una producción de ropa interior que realizará, así mejorará sus ventas.
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.