Berta is a 56 year old farmer who lives in the area of Las Pavas, in the municipality of Santuario, Colombia, where she and her husband live on a small plot of land and have worked as house stewards for more than 20 years.
Her primary motivation for getting ahead in life is her grandchildren, as her daughter died a year ago and she has assumed responsibility for raising her children. In order to guarantee them a better future, Berta is applying for a loan so she may purchase a dairy cow as the property owner has loaned them a plot of land. She hopes that she can begin producing milk with this investment and improve the economic condition of her household and guarantee a strong education for her three grandchildren.
Berta de 56 años de edad, es una campesina, radicada en la vereda las Pavas, del municipio del Santuario, Colombia, en donde reside en una finca con su esposo realizando las labores de mayordomos, desde hace más de veinte años.
Su principal motivación para salir adelante son sus nietos, debido a que su hija falleció hace un año y debió asumir la responsabilidad de su crianza. Con el fin de garantizarles un mejor futuro, Berta se encuentra solicitando un crédito que destinará en la compra de una vaca lechera, ya que el propietario de la finca les prestó un lote. Espera que con esta inversión pueda iniciar con la producción de leche y mejorar la condición económica de su familia y garantizarles a sus tres nietos una buena educación.
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.