At age 68, Mr. Libardo is a musician in the city of Sonsón, north of Antioquia where he was born. This entrepreneur wants to open a store that sells his own family products that he will set up and run from his home. This will allow him to increase his income to improve his family’s quality of life.
Mr. Libardo needs a loan to be able to set up the space for the store and pay for labor to do so.
A sus 68 años de edad, Libardo quien se dedica a la musica en el municipio de Sonsón al norte de Antioquia de donde es oriundo, este emprendedor espera montar una tienda de productos propios de la canasta familiar en un local ubicado en su propa casa, lo que le permitirá genrar mayores ingresos para su familia y mejorar su calidad de vida.
Libardo, necesita de un préstamo para adecuar el espacio donde montará su tienda, así como para pagar la mano de obra que realizará dichos arreglos.
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.