Update on Luis FernandoLuis worked at a shoe factory for many years, but he lost his job after the owner of the company decided to move the business to another city. It was at that point that he decided to use some of his savings to start his own shoe repair business. At first it was extremely difficult given that he had limited available capital, but gradually he improved his business and his shop has been in operation for 25 years.
Luis is the head of his family, so his wife and three children are dependent on the income generated from his business. For this reason, Luis is always looking each day for ways to improve his business and increase his income. The season is approaching when his sales increase considerably, so Luis is requesting a loan to buy supplies such as soles, rubber, fabric, and other supplies so that he will have sufficient inventory to respond to the requests of his customers.
His dream is to continue his business and improve each day so that his family will have more income and the opportunity to enjoy a better quality of life. He also wants to have more financial opportunities to make progress.
Su sueño es poder continuar con este negocio y mejorarlo cada día para que su familia tenga mejores ingresos y así la oportunidad de gozar de una mejor calidad de vida y mayores oportunidades económicas para progresar.
Previous Loan DetailsLuis Fernando is a hardworking and dedicated man. He is married and has 3 children. He has been a cobbler for the last 25 years and now, in his 56th year, he lives alone with his wife. However, he has not abandoned his small business as, according to him, he is happy pleasing his customers with t... More from Luis Fernando's previous loan »
Important InformationThis 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.
Concurrent and Successive Loans
Our Field Partners often work with borrowers over a series of loans as the borrowers build credit, take out bigger loans, and expand their businesses. In order to make it easier for our Field Partners to post loans for borrowers who have been listed on Kiva before, we allow them to post successive and concurrent loans for their Kiva borrowers. This means that our Field Partners are able to post a borrower's second, third, etc., loan on Kiva without having to re-enter all of the borrower's information.
This borrower has been listed on Kiva before, so you'll see an updated loan description, as well as excerpts of the original descriptions from earlier loans. Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Field Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These "add-on" loans are typically smaller than the borrower's primary loan and serve a different purpose. Because Field Partners can now post loans as successive and concurrent loans, you will be able to track borrower progress over time and see the various ways a borrower is working with our Field Partners through funds from Kiva’s lenders.
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