Hernán is a 46-year-old married man; he does not have children. He came to the city because of the lack of employment and economic difficulties in the town where he lived. He currently works selling merchandise like quilted blankets, mats, towels and curtains, among others, an activity he’s been doing for three years since he started selling them on credit door to door in various neighborhoods in the city.
The loan he’s asking for is to buy more merchandise at wholesale (blankets, quilts, curtains and towels) because he can take advantage of discounts he gets for paying cash and his profits will be higher. His main dream is to make his business grow so that he can offer employment opportunities because he wants to hire to people to collect payments.
Hernán es un hombre de 46 años de edad, es casado y no tiene hijos. Llegó a la ciudad debido a la falta de empleo y dificultades económicas que tenía en el municipio donde vivía. Actualmente se dedica a la venta de mercancía como tendidos acolchados, tapetes, toallas, cortinas, entre otros, actividad que realiza hace tres años, cuando comenzó a ofrecerlas puerta a puerta en diferentes barrios de la ciudad y venderlas a crédito. El crédito que solicita lo desea invertir en la compra de más mercancía al por mayor (cobijas, acolchados, cortinas, toallas) ya que puede aprovechar los descuentos que le hacen por compra de contado y así poder generar buenas utilidades. Su principal sueño es hacer crecer su negocio para tener la posibilidad de ofrecer oportunidades de empleo, ya que quiere contar con el apoyo de 2 personas que le realicen el cobro de facturas.
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.