Carlos, 45 years old, has worked for some time servicing tires and fixing cars in a shop in the municipality of Rionegro, Colombia. This business has been the source of income for his family and paid for his three children's education. He currently finds himself requesting a loan that will be invested in the purchase of an air compressor and hand tools, with the goal of improving the quality of his service and generating better revenues that will allow him to guarantee his family a dignified life.
Carlos de 45 años de edad, presta desde hace varios años el servicio de montallantas y arreglo de vehículos en un local del municipio de Rionegro, Colombia. Actividad que se ha constituido en la fuente de ingresos para su familia y educación para sus tres hijos. En la actualidad se encuentra solicitando un crédito que invertirá en la compra de un compresor y herramientas de mano. Con el fin de mejorar la calidad en el servicio y generar mayores ganancias que el permitirá garantizarle a su familia una vida digna.
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.