Manuel Salvador, thirty-one, has been in agriculture for twenty years, having learned the trade from his father. He currently grows peas and beans on a plot of land he rents on an acquaintance's farm. Over the winter his crops have had disease and done poorly, so Manuel Salvador needs to buy fertilizer and an irrigation system to help them do better and produce a high enough quality of vegetable for him to sell. That way he can increase his income and improve the quality of life for his wife and seven-year-old son.
El señor Manuel Salvador a sus 31 años de edad se dedica a trabajar la agricultura desde hace 20 años, aprendiendo esta labor de su padre. Actualmente, el señor Manuel Salvador tiene cultivos de fríjol y arveja en un terreno alquilado en una finca de un conocido. Por el invierno sus cultivos se han desmejorado y tienen enfermedades, por lo cual el señor Manuel Salvador necesita de la compra de abonos y riegos agrícolas que le permitan mejorar sus cultivos y producir verduras de calidad, las cuales pueda vender y así mejorar sus ingresos y calidad de vida de su hijo de 7 años y su 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.