Paula Andrea, 20, is a young entrepreneur who decided to learn the beauty industry. She’s been providing in-home manicure and pedicure services for two years and is able to help cover her family’s household expenses this way. Her greatest wish is to continue learning this art and open her own beauty salon. To reach this dream she needs a loan to buy the most important tools needed for her business. She wants to enter university but since she does not have the money for this is saving up to enroll next semester.
Paula Andrea de 20 años de edad es una joven emprendedora que decidió aprender el oficio de la estética. Desde hace 2 años de dedica a realizar manicure y pedicure a domicilio, labor con la que ayuda a su familia para los gastos de la casa. Su mayor anhelo es seguir aprendiendo de este arte y poder montar su salón de belleza. Para cumplir su sueño solicita un crédito con el que comprará las herramientas más importantes para su negocio. Desea poder ingresar a la universidad pero como no cuenta con el dinero necesario está ahorrando para matricularse el semestre entrante.
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.