Alejandro is 20 years old. He works in a farm as milker, an activity he has learned from his older brother who taught him when Alejandro was young: they live in the country and there this type of job is quite common. He comes from a modest family and the economic situation of his household is difficult. Working as an milker, Alejandro has succeeded in earning an income to provide for the daily necessities of his family. He also owns 2 cows he breeds in a small plot he pays rent for: he daily milks them to sell their milk and earn an additional income. This borrower is a dynamic and resourceful young man, and for this reason he decided to ask for his first loan: he will use it to purchase more dairy cows in order to increase his earnings. He also wants to making his biggest dream come true: owing many dairy cows and make his activity grow in order to keep on economically supporting his household and to improve his family’s standard of living.
Alejandro, a sus 20 años de edad es empleado de una finca donde trabaja como ordeñador de vacas, actividad que aprendió gracias a su hermano mayor que le enseñó desde pequeño, ya que viven en el campo, donde es común realizar esta labor. Pertenece a una familia humilde y la situación económica en el hogar es difícil. Con su empleo como ordeñador, Alejandro ha podido generar ingresos para satisfacer las necesidades diarias de su familia, y adicionalmente tiene 2 vacas de su propiedad, en un pequeño terreno arrendado, las cuales ordeña diariamente para vender la leche y así tener un recurso adicional. El prestatario es un joven dinámico y emprendedor, por eso se motivó a solicitar el primer crédito para invertirlo en la compra de más vacas lecheras y, de esta manera incrementar sus ingresos, además pretende cumplir su principal sueño que es tener muchas vacas productoras de leche y hacer crecer su negocio, para continuar apoyando la situación económica en su hogar y mejorar la calidad de vida de la familia.
More information about this loan
By funding this loan, you are promoting entrepreneurship in remote regions, including areas recovering from guerilla warfare in Colombia, and helping to reverse the rural exodus which occurred in the past decades when a the rural population fled their countryside homes for the safer cities.
This Kiva loan was created by Kiva's field partner Interactuar specifically for Kiva funding, in an effort to reach more borrowers in rural areas. Most of the Interactuar's lending operations are focused in urban parts of Medellin. But this loan product is designed to provide working capital to riskier agricultural businesses who have been traditionally excluded from the finance sector.
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.