At the age of 69, Luis Alberto works from 6am until 6pm in construction jobs in Medellín alongside his son and three other people. This hardworking man has been in this line of work for 30 years. To continue doing his work more efficiently, Luis Alberto needs to buy some tools like emery and painting equipment because the ones he has aren’t working too well anymore because of their age.
A sus 69 años de edad, Luis Alberto trabaja desde las 6:00 de la mañana hasta las 6:00 de la tarde en los oficios propios de la construcción en Medellín, al lado de su hijo y otras tres personas, este luchador se dedica a esta labor desde hace 30 años.
Para continuar realizando su labor de una manera más eficiente, Luis Alberto necesita de un préstamo para comprar algunas herramientas como esmeril y equipo de pintura pues los que tiene ya no le prestan un buen servicio debido a su antigüedad.
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.