From the time she was young Marta liked handicrafts, and for that reason she decided to take ceramics classes. Once she learned the art she began to sell her work to family and friends, and they began to ask her for orders. She decided to begin her business in order to generate income and sustain her two children. She also works selling merchandise and accessories, since ceramics sell very little. Marta hopes to grow her business and invest in inventory for the holiday season. For that reason she is requesting a loan that will allow her to buy materials in order to make Christmas dolls.
A Marta desde muy pequeña le gustaron las manualidades, por lo cual decidió tomar clases de cerámica. Una vez aprendió el arte comenzó a vender sus trabajos a familiares y amigos, los cuales comenzaron a hacerle encargos y decidió montar su negocio para generar ingresos y sostener a sus dos hijos. También se dedica a la venta de mercancía y accesorios, debido a que las cerámicas se venden muy poco. Marta desea ampliar su negocio e invertir en surtido para la temporada de fin de año, por lo cual solicita un crédito que le permita comprar los materiales para realizar muñecos navideños.
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.