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Álvaro
Álvaro, 65, has been making and selling corn flatbread, a skill he acquired working in various local restaurants, for 15 years. He lives in a free union with his wife and has no children; therefore, he only has his wife's support. Álvaro gets up at dawn to make his homemade flatbread. He grinds the corn by hand, shapes and then grills the bread over wood, and goes out in the afternoon with his wife to sell the products throughout the neighborhood. The income allows them to support themselves each day.

He has applied for a loan to buy an electric mill ($1000), pots to cook corn ($300), and wholesale corn ($700) to increase production. He will save time grinding the corn and will use the extra time to sell his product in other nearby neighborhoods. This will allow him to increase his income and improve his standard of living and finances. Álvaro dreams of marketing his product as 100% natural and having it be recognized throughout the area so that he can create more jobs.
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Álvaro, a sus 65 años de edad se dedica a la elaboración de arepas de maíz, para luego venderlas; actividad que realiza hace aproximadamente 15 años, luego de haber adquirido la experiencia cuando trabajaba en diversos restaurantes de la región. Él vive en compañía de su esposa en unión libre y no tiene hijos, por lo que sólo cuenta con el apoyo de ella. Álvaro se levanta en horas de la madrugada para comenzar a elaborar sus arepas de forma artesanal, pues muele el maíz a mano, luego de moldear las arepas, estas son asadas al carbón y, en horas de la tarde sale con su esposa a distribuirlas por toda la zona, con lo cual obtiene los ingresos para subsistir diariamente.
El crédito que solicita desea invertirlo en la compra de un molino eléctrico $1.000.000, ollas para cocinar el maíz $300.000 y comprar maíz al por mayor $700.000, con lo cual podrá aumentar su producción ya que ahorraría tiempo al momento de moler el maíz y así podría utilizar este tiempo adicional en la distribución del producto hacia otras regiones cercanas, lo que le permitirá aumentar sus ingresos y mejorar su calidad de vida con una buena estabilidad económica. Álvaro sueña con posicionar su producto como un alimento 100% natural, que sea reconocido en toda la región y así poder generar más oportunidades de empleo.

Additional Information

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.

Important Information

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.

About Colombia

  • $6,070
    Average annual income
  • 299
    View loans »
    Colombia Loans Fundraising
  • $13,837,125
    Funds lent in using Kiva
  • 1,875.4
    Colombia Pesos (COP) = $1 USD

Success!! The loan was 100% repaid

A loan of $1,075 helped Álvaro to buy an electric mill ($1000), pots to cook corn ($300), and wholesale corn ($700).
100% repaid
Repayment Term
26 months (Additional Information)
Repayment Schedule
Monthly
Pre-Disbursed:
Jun 18, 2013
Listed
Jul 22, 2013
Currency Exchange Loss:
Covered
Ended:
May 22, 2014