María Ester is fifty-eight years old. She makes a living selling custom-made merchandise, mainly men's clothing, pajamas, accessories, lingerie, and personal use products. She learned this business from a friend and, ever since, it has allowed her to generate her own income. This income has covered costs for her basic necessities and has allowed her to economically support her parents.
With the goal of increasing her sales, María is requesting a loan that she will invest in the purchase of products wholesale in order to reduce costs and increase her profit margin. This will improve her income and the quality of life for her family.
María Ester de 58 años de edad, se dedica a la venta de mercancía por encargo, comercializa principalmente ropa para hombre, pijamas, accesorios, lencería y productos de uso personal, esta actividad la aprendió con una amiga y desde entonces le ha permitido generar sus propios ingresos con los cuales suple sus necesidades básicas y apoya económicamente a sus padres. Con el propósito de incrementar las ventas, María se encuentra solicitando un crédito que invertirá en la compra de productos al por mayor para reducir costos y aumentar su margen de utilidad, con ello mejorará sus ingresos y calidad de vida de su familia.
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.