For Jorge life has not been a bed of roses. He had to face the working world when he was very young because of the death of his parents. With no education and with few work opportunities he decided to sell on foot in order to support himself. Jorge would like to have more opportunities and improve his quality of life so he wants to invest in his business in order to increase his income. He is sure that the Christmas season will provide a good opportunity so he is asking for a loan in order to buy year end merchandise.
Para Jorge la vida no ha sido color de rosa, desde muy joven le tocó enfrentarse al mundo laboral debido al fallecimiento de sus padres. Sin educación y con pocas oportunidades de empleo decidió dedicarse a la venta ambulante como medio de sostenimiento. Jorge desea poder tener mayores oportunidades en la vida y mejorar su calidad de vida por lo cual quiere invertir en su negocio con el fin de generar ingresos. Esta seguro que la temporada navideña es una buena oportunidad y por eso se encuentra solicitando un crédito con el que espera comprar surtido para la temporada de fin de año.
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.