Juan Manuel is 46 years old. He worked for many years for a business in the commercial sector, but due to downsizing, he became unemployed. This motivated him to start his own business and become an entrepreneur.
He opened a general store to the public three months ago. The business has been well received by the people in his neighborhood, which caused him to request a loan so that he can purchase stock and shelves so that he can better present his products. He hopes that he can meet the needs of his household and educate his 16 year old son.
Juan Manuel, de 46 años de edad, trabajó por varios años en una empresa del sector comercial, pero debido a un recorte de personal, quedó desempleado, suceso que lo motivó a motar su propio negocio y convertirse en un microempresario.
Desde hace tres meses abrió al público una tienda dedicada a la venta de productos de la canasta familiar, la cual ha tenido muy buena acogida entre las personas del sector, motivo que lo ha impulsado solicitar un crédito dedicado a la compra de surtido y compra de estanterías para mejorar la exhibición de los productos. Espera seguir solventando las necesidades de hogar y la educación de su hijo de 16 años.
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.