Alberto is 40 years old and is the father of a 17 year old son. Alberto and his wife sell merchandise such as household and personal use items from their location in the Medellín city center. Thanks to the public spaces, he doesn’t have to pay rent. Alberto works from 9:00 am to 6:00 pm. He would like to buy Christmas merchandise and toys to meet the year end season’s demand. This will help him increase his sales and help his family.
El señor Alberto a sus 40 años de edad es padre de un hijo de 17 años. El señor Alberto se dedica junto con su esposa a la venta de mercancía tal como artículos para el hogar y de uso personal. El local del señor Alberto esta ubicado en el centro de la ciudad de Medellín, gracias a que espacio público le otorgó el local donde no paga arriendo. La jornada de trabajo del señor Alberto es de 9:00 a.m. a 6:00 p.m. El señor Alberto desea comprar mercancía navideña y juguetes para suplir la demanda por temporada de fin de año. Lo anterior le permitirá mejorar sus ventas y por ende 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.