Ramiro, 50, has worked as a mechanic for 8 years in a small shop located in Bello, Antioquia. Thanks to the good work he does in the sector his clientele has increased making it possible for him to guarantee better living conditions for his two children. One of his greatest hopes is to improve his economic condition and be able to insure quality education for his two children which is the reason why he’s motivated to request a loan to buy tools in order to provide better service.
Ramiro, tiene 50 años de edad, labora como mecánico desde hace ocho años, en un pequeño taller ubicado en el municipio de Bello, Antioquia. Gracias a la buena labor que realiza en el sector su clientela se ha incrementado, permitiéndole garantizar a sus dos hijos mejores condiciones de vida. Uno de sus mayores anhelos es mejorar su la su condición económica y poder asegurar una educación de calidad a sus dos hijos. Razón que lo ha motivado a solicitar un crédito que invertirá en la compra de herramientas con el fin de garantizar un mejor servicio.
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.