Hernán de Jesús' dream is to having his own car which would allow him to transport his fruit. He lives in the municipality of Santa Barabara to the southwest of the department of Antioquia in Colombia. For the moment, this entrepreneur needs a loan to buy a larger amount of mangoes to sell at better prices to increase profits.
Tener un carro propio que le permita transportar las frutas es el sueño de Hernán de Jesús del municipio de Santa Barabara al suroeste del departamento de Antioquia en Colombia. Por ahora este emprendedor necesita de un préstamo para comprar mayor cantidad de mangos y así obtener mejores precios para incrementar sus 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.