Luis Alberto is a tireless and hard worker who alternates his job running a steamroller with that of selling fruits and vegetables in the different streets of Bello, a town on the outskirts of Medellín where he lives. This entrepreneur works long workdays in hopes of improving his quality of life. Currently, he needs a loan to buy a greater variety of fruits and vegetables in order to increase his sales.
Luis Alberto es un luchador incansable que alterna su trabajo en el que maneja una retroescabadora con la venta de frutas y verduras en las diferentes calles de Bello, municipio en las afueras de Medellín en el que vive. Este emprendedor trabaja largas jornadas esperando mejorar su calidad de vida. Actualmente necesita de un préstamo para comprar mayor variedad de frutas y verduras y así incrementar 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.