Señor Mauricio at the age of 22 years is an entrepreneur who wants to start his own business manufacturing and selling mops and brooms in his neighbourhood called El Playón, located to the north of the city of Medellin. Señor Mauricio learned this trade from his father who works in a company related to this business. Señor Mauricio needs to buy a trimming machine and cutting machine as well as raw materials such as cloth and wooden poles, with a view to starting his own business and generating his own income so that he can study and achieve his dream of having his own company and generating more jobs.
El señor Mauricio a sus 22 años de edad, es un emprendedor quien desea iniciar su propio negocio de fabricación y venta de traperos y escobas en su barrio el Playón ubicado al norte de la ciudad de Medellín. Este oficio el señor Mauricio lo aprendió de su padre quien trabaja en una empresa relacionada con esta actividad. El señor Mauricio requiere de la compra de una maquina ribeteadora y una cortadora y materia prima tal como telas y palos de madera, esto con el fin de poder iniciar su negocio y generar sus propios ingresos para poder estudiar y cumplir su sueño de tener su propia empresa y en ella generar varios 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.