Hernando is 58 years old. He is married with 4 children. He is a farmer, and since his youth he has worked growing potatoes and grain. This activity is the main livelihood for himself and his family. The changing climate in the region has caused Hernando considerable losses to his crops. For this reason he is applying for a loan in order to buy supplies and fertiliser, with which he will sow on his plot again. Due the critical situation in which he finds himself Hernando has been forced to look for a job, but at his age, it has been difficult. He hopes that with this loan he will be able to return to his great passion which is agriculture.
Hernando de 58 años de edad, casado y con 4 hijos, es un campesino dedicado al cultivo de papa y flor desde su juventud, actividad que es su principal fuente de sustento para él y su familia. El cambio climático de la región le ha ocasionado cuantiosas pérdidas en sus cultivos, por lo cual solicita un crédito para la compra de insumos y abonos, que sembrará nuevamente en su lote. Debido a la crítica situación por la que atraviesa se ha visto en la obligación de buscar empleo, pero por su edad le ha sido difícil. Espera que con el crédito pueda volver a su gran pasión que es la agricultura.
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.