Alejandra is 40 years old and is the mother of two children and the head of the household. She has been working for the last 8 years selling clothes to family and friends, which has enabled her to provide for her family and pay for her children’s schooling.
She wants to be able to offer her family a better quality of life, and to achieve this dream she wants to grow her business and eventually set up a big store, although she realizes that that will be in the more distant future. At the moment, she is requesting a loan to buy a variety of merchandise for the Christmas season, taking advantage of the fact that many families buy clothing at this time.
Alejandra de 40 años de edad, es madre cabeza de familia de dos hijos, ha laborado durante 8 años vendiendo ropa a familiares y amigos, actividad que le ha permitido sostener el hogar y brindarles estudio a sus hijos. Ella desea poderle ofrecer a su familia una mejor calidad de vida, por eso sueña con ampliar su negocio y montar un gran almacén aunque asegura que eso será en el mediano plazo, por el momento se encuentra en búsqueda de un crédito con el que comprará surtido para la temporada navideña aprovechando que muchas familias compran ropa en ese tiempo.
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.