Don Luis Ángel is a shoemaker by profession. He has been making shoes for the past 16 years. He started his business in one of the rooms of his house since his financial situation did not permit to open his own shop. The shoes he produces he later sells in different towns in the department of Antioquia.
Luis is requesting a loan to purchase basic materials to increase his production and generate higher earnings. His greatest dream is to expand his business and start a large enterprise and create jobs.
Don Luis Ángel es zapatero de profesión. Desde hace 16 años se dedica a la fabricación de calzado, montó su negocio en una de las habitaciones de su casa, debido a que su situación económica no le permite ubicarse en un local. Desde allí elabora su producción que posteriormente comercializa en diferentes municipios del departamento de Antioquia. Luis se encuentra solicitando un crédito con el que espera comprar materia prima para aumentar su capacidad de producción y generar mayores ingresos. Su mayor sueño es poder ampliar su negocio y montar una gran empresa para generar empleos.
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.