Luis Ángel, 34 years old, lives in a district of the Sonsón municipality in the department of Antioquia, Colombia, with his wife and his two minor children. All of his life he has made a living in agricultural work, a job he learned from his father. Currently his crops are coffee, plantains and sugar cane. He is requesting a loan to buy supplies to fertilize his coffee crop. His greatest challenge has been the high cost of labor which makes the product more expensive and sales difficult, which generates fewer profits. His dream is to be able to offer his family economic stability and a better quality of life.
Luis ángel de 34 años de edad, vive en una vereda de Sonsón municipio del Departamento de Antioquia, Colombia, con su esposa y sus dos hijos menores de edad. Toda su vida se ha dedicado a las labores del campo, actividad que aprendió de su padre. En la actualidad tiene cultivos de café, plátano y caña de azúcar. Se encuentra solicitando un crédito para la compra de insumos para abonar su cultivo de café. Su mayor desafío ha sido el alto costo de mano de obra que hace que el producto se encarezca y su venta sea muy difícil, lo cual le genera menores rendimientos. Su sueño es poder ofrecerle a su familia una estabilidad económica y una mejor calidad de vida.
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.