Wilson, who is 44 years old, learned the trade of hairdressing after looking for work and not finding it. Tired and needing to improve his economic condition, he dedicated himself to this job, which has been his only way of earning his daily bread. Wilson has one great need: to purchase some work tools that the city’s Secretary of Health has required. If he doesn’t obtain them, he will be obligated to close the business, as they are a requirement for it. Wilson is afraid of losing his only source of employment, and because of this, he has resorted to requesting a loan in order to purchase the work tools and in doing so, to invest in supplies.
Wilson de 44 años de edad, aprendió el oficio de peluquería, tras buscar empleo y no conseguirlo. Cansado y necesitado por mejorar su condición económica se dedicó a este oficio el cual ha sido su único medio para ganarse el pan de cada día. Wilson tiene una gran necesidad; comprar algunas herramientas de trabajo que le ha exigido la Secretaría de Salud de la ciudad, de no adquirirlas se verá en la obligación de cerrar el negocio, ya que es una exigencia de la misma. Wilson teme perder su única fuente de empleo y por ello ha recurrido a solicitar un préstamo para comprar las herramientas de trabajo y de paso invertir en surtido.
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.