Sr. Isaac, 61, has owned a hardware store for more than 16 years. In his shop he sells all kinds of construction-related products. He works alone every day and needs to do some remodeling at his business, such as installing two barred doors, for his own and his shop’s security. As well, he needs to buy supplies, such as metal, nails and hammers among other items.
Sr. Isaac’s dream is to help his son get ahead and to provide his family with a better quality of life.
El señor Isaac a sus 61 años de edad, es dueño de una ferretería hace más de 16 años. En su local, el señor Isaac vende todo lo relacionado con productos para la construcción. El señor Isaac trabaja solo en una jornada de todos los días. El señor Isaac necesita realizar adecuaciones locativas para su negocio como lo serán dos puertas en rejas para la seguridad propia y de su negocio, además necesita de la compra de surtido como metales, clavos, martillos, entre otros. El sueño del señor Isaac es sacar adelante a su hijo y brindar una mejor calidad de vida a su familia.
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.