Luz Berenice, 48 years old, is a seamstress in her small workshop located in her home. She learned the trade by family tradition and has more than 20 years experience. Currently she has her own line of pajamas which are sold in various stores in her municipality.
With the idea of improving her household income, Luz decided to begin selling ice cream at home, which is why she is requesting a loan in order to buy an assortment. She hopes that her financial situation will improve and she can secure better living conditions for her family.
A sus 48 años, Luz Berenice se dedica a la confección en un pequeño taller ubicado en su residencia, aprendió el oficio por tradición familiar y cuenta con más de 20 años de experiencia. Actualmente cuenta con una línea propia de pijamas, las cuales son comercializadas en diferentes almacenes de su municipio. Con el propósito de mejorar los ingresos de su hogar, Luz decidió iniciar una venta de helados en su vivienda, por lo cual se encuentra solicitando un crédito para la compra de surtido. Espera que su condición económica mejore y pueda garantizarle a su familia mejores condiciones 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.