Victor, 27, is an entrepreneur who, 9 months ago, started his own business selling fruits and vegetables to increase his income. He spends part of his time working in this business, and the other part working as a merchant, a trade that he has been involved in for 10 years. Victor attends to this business half the time, and the rest of the time it is attended to by a relative. In order to increase the products that he offers in his business, Victor needs to buy meat and dairy products to sell to his customers. Victor has to work arduously to get the resources he needs to provide the basic necessities to his family and his parents, who are elderly.
El señor Víctor a sus 27 años de edad es un emprendedor quien inicia desde hace 9 meses su propio negocio de venta de frutas y verduras con el cual pudiera mejorar sus ingresos y trabajar alternamente con su actividad de comerciante que realiza desde hace 10 años. El negocio es atendido medio tiempo por el señor Víctor y medio por una familiar. Con el ánimo de ampliar la oferta de productos ofrecidos en su negocio, el señor Víctor necesita de la compra de productos cárnicos y lácteos para vender a sus clientes. El señor Víctor debe trabajar arduamente para conseguir los recursos para suplir las necesidades básicas de su familia y sus padres quienes son adultos de avanzada edad.
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.