Mr. Luis Fernando, 41 and father of three children, raises cattle from his home and sells their milk and has done so for several years. Mr. Luis Fernando wishes to buy a cow and increase his income to improve his quality of life and that of his family. Mr. Luis Fernando dreams of increasing his herd of cattle and being a great entrepreneur.
El señor Luis Fernando a sus 41 años de edad y padre de tres hijos, se dedica desde su casa a la crianza de vacas y venta de leche de las mismas. Esta actividad la realiza desde hace varios años. El señor Luis Fernando desea comprar una vaca y así aumentar sus ingresos y a la par mejorar su calidad de vida y la de su familia. El señor Luis Fernando sueña aumentar su lote de ganado y ser un gran empresario.
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.