55-year-old José Luis has been known in his neighborhood to be a hard-working man. He has always been passionate about the business world, which is why he has worked in retail for most of his life. Two months ago he started his own business selling food and ice cream, with the goal of becoming more stable and ensuring better living conditions for his family. He's currently requesting a loan which he'll use to stock up in order to build a reputation for his business and position it within the local market.
José Luis de 55 años de edad, se ha caracterizado en su barrio por ser un hombre trabajador. Siempre le a apasionado el mundo de los negocios por lo cual se dedicó al comercio gran parte de su vida. Desde hace dos meses creó su propio negocio dedicado a la venta de alimentos y helados, con el fin de tener una mayor estabilidad y garantizarle a su familia mejores condiciones de vida. En la actualidad se encuentra solicitando un crédito que invertirá en la compra de surtido con el fin de acreditar su negocio y posicionarlo 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.