María Belén is 53 years old, and was left a widow 20 years ago. Seeking alternatives for supporting her family comprised of three children, Maria decided to start a business decorating and selling ceramics. This is a skill she developed from a very young age.
Currently she has a craft workshop in her home, where she gives classes several days a week. In order to open her business to the public, Maria is seeking a loan that she will use to buy materials and to make on-site improvements. Her aim is to become better known and acquire a greater number of customers. This will allow her to improve her quality of life and grow within the local market.
María Belén tiene 53 años de edad y desde hace 20 años quedó viuda. En búsqueda de alternativas para el sostenimiento de su familia compuesta por tres hijos, María decidió dedicarse a la decoración y venta de cerámicas, habilidad que desarrolló desde su infancia y juventud. En la actualidad tiene un taller de manualidades desde su vivienda, en el cual dicta clases varios días a la semana. Con el fin de abrir su negocio al público, María se encuentra solicitando un crédito que invertirá en la compra de insumos y adecuaciones locativas, con el fin de darse a conocer y adquirir un mayor número de clientes, lo que le permitirá mejorar su calidad de vida y crecer dentro del mercado local.
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.