Edison is 18 years old. He is a young entrepreneur and wants a better future for him and his family. He just finished school and owing to the difficult economic condition at home, some months ago began to work to pay for his university studies.
He works in flower cultivation, providing transportation service to the airport in the town of Rionegro, Colombia. Owing to some technical failures in the vehicle in which he transports the product, Edison finds himself applying for a loan that he will invest in the repair of the motor and the shocks. He hopes with this investment to improve the economic condition of his family and to convert himself into a great professional.
Edison de 18 años de edad, es un joven emprendedor y con ganas de un mejor futuro para el y su familia. Acaba de salir del colegio y debido a la difícil condición económica en su hogar, desde hace algunos meses comenzó a laborar para pagarse sus estudios universitarios. Trabaja en un cultivo de flores prestando el servicio de transporte hacia el aeropuerto en el municipio de Rionegro, Colombia. Debido a que el vehículo en el que transporta el producto presenta algunas fallas técnicas, Édison se encuentra solicitando un crédito que invertirá en la reparación del motor y amortiguadores. Espera con esta inversión mejorar las condiciones económicas de su familia y convertirse en un gran profesional.
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.