Edgar, age 30, is hardworking and has ambitious plans for his business. He worked for many years in the mining industry, but left it due to security problems there. With his savings he started his own business in which he sells mining equipment and supplies, making good use of his knowledge in this area. He works seven days per week from 6 am to 8 pm.
His greatest dream is to be able to strengthen his business and increase his sales. His sales income is the only source of income on which he supports his wife and four-year-old child. Edgar is requesting a loan to buy construction materials for his mining equipment store with the purpose of increasing its profitability and offering his family economic stability.
Edgar de 30 años de edad es un hombre trabajador y con grandes proyectos de negocio. Durante muchos años se dedicó a la minería, pero debido al orden público de la zona decidió retirase y con sus ahorros montar su propio negocio de comercialización de accesorios para minería, aprovechando sus conocimientos en el área. Labora los siete días de la semana de 6 de la mañana a 8 de la noche. Su mayor sueño es poder consolidar su negocio e incrementar su nivel de ventas, ya que esta es su única fuente de ingresos, con la cual sostiene a su esposa y a su hijo de 4 años de edad. Edgar se encuentra solicitando un crédito que invertirá en la compra de material de construcción para su ferretería con el propósito de incrementar su rentabilidad y ofrecerle a su familia una estabilidad económica.
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.