Jorge is 48 years old and an enterprising man who some 11 years ago initiated his own business selling products by catalog, including perfumes, lotions, and fragrances. His clients reside in the municipality of La Ceja, located in the east of Antioquia, and its villages. Jorge learned this activity from watching his friends. He alternates between this and his work as a guard.
Jorge currently lacks capital to invest because many of his customers are not paying their debts. For this reason, he wants to buy new merchandise to offer to new customers and, thus, be able to recuperate and improve his quality of life, as well as that of his wife and son.
El señor Jorge a sus 48 años de edad es un emprendedor quien inicia desde hace 11 años su propio negocio de venta de productos por catálogo como perfumes, lociones y fragancias a personas del municipio de la Ceja localizado al oriente de Antioquia y sus veredas. Esta actividad la aprendió viendo trabajar a sus amigos y la alterna con su trabajo como celador. El señor Jorge se encuentra sin capital de trabajo debido a que muchos de sus clientes no le cancelaron sus deudas, por lo que requiere de la compra de nuevo surtido para ofrecer a nuevos clientes y así poder recuperarse y mejorar su calidad de vida, la de su hijo y esposa.
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.