María Inés is 45 years old and the mother of a 16 year old son. She has a small workshop in her home, where she makes clothing for her friends and family. María Inés has been doing this for 20 years and needs to buy a sewing machine that will allow her to increase her ability to fill orders and improve her quality of life, increase her income, achieve her dreams of creating her own line of clothing, and provide a good education to her son.
La señora María Inés a sus 45 años de edad es madre de un hijo de 16 años, se dedica desde su pequeño taller ubicado en su casa a la confección de prendas de vestir a sus familiares y conocidos. Este oficio lo realiza la señora María Inés desde hace 20 años. La señora María Inés requiere de la compra una maquina ribeteadora que le permita hacer una mayor cantidad de pedidos y así mejorar su calidad de vida, obtener mayores ingresos y cumplir su sueño de sacar su propia línea de ropa y darle una buena educación a su hijo.
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.