Francisco Luis, 55, sells merchandise, mainly clothes; he’s been in business for several years. Francisco Luis has always worked alone and this activity represents the largest part of income Francisco Luis has earned his entire life.
For the end of year season, Francisco Luis wants to buy an assortment of clothes that will allow him to increase sales thus his income and quality of life. His dream is to own a store and to generate jobs in it.
El señor Francisco Luis a sus 55 años de edad se dedica a la venta de mercancía principalmente ropa, esta actividad la realiza desde hace varios años. El señor Francisco Luis siempre ha trabajado sólo y esta actividad representa la mayor parte de ingresos que durante toda su vida ha recibido el señor Francisco Luis. Para la temporada de fin de año, el señor Francisco Luis desea comprar surtido que le permita aumentar sus ventas y de esta forma poder incrementar sus ingresos y así su calidad de vida. El sueño del señor Francisco Luis es tener su propio almacén y en este poder generar empleos directos.
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.