José Alberto, 63, is a man who has had to work since he was a little boy because of his family’s economic situation. At the age of 12 he started out as a helper in his father’s butcher shop and he learned the occupation there. Later on, he decided to open his own business going into it full-time working from 8am until 7pm.
José has two children who are 10 and 8 years old who he hopes to provide with a better future giving them the opportunity of attending school in order to improve their quality of life. His greatest dream is to expand the business and his installed capacity which is why he’s asking for a loan he intends to use to make changes to the cold storage room and physical improvements to the shop.
José Albeiro de 63 años de edad, es un hombre al que desde niño le tocó trabajar, debido a la situación económica de su familia. A los 12 años inició como ayudante en la carnicería de su padre, allí aprendió el oficio. Posteriormente decidió montar su propio negocio dedicándose de tiempo completo a esta actividad laborando diariamente de 8 a 7 de la noche. José tiene dos hijos de 10 y 8 años de edad, a los que espera poderles ofrecer un mejor futuro, brindándoles la oportunidad de ingresar a la escuela con el fin de mejorar su calidad de vida. Su mayor sueño es ampliar el negocio y su capacidad instalada, por lo cual solicita un préstamo con el que pretende realizar reformas en el cuarto frío y mejoras locativas.
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.