Juan is a displaced person from Sincelejo; he’s 40-years-old, in a common law relationship and has three children who are 9, 7 and 3 years of age. To start supporting himself in a new city he needed to sell fruit in the street to provide sustenance for his children.
In time, Juan got the opportunity of buying merchandise and at present is selling women’s clothing that his wife makes; she has a home-based sewing workshop. However, they manage their businesses separately because his wife manufactures for other businesses downtown in order to have resources for her family.
In addition to selling the clothes his wife makes, Juan also sells cell phones minutes because there are many passersby in the sector where his business is located. He’s requesting the loan to stock up on more merchandise (women’s clothing) for his business.
Juan es un señor desplazado de Sincelejo de 40 años que tiene 3 hijos en Unión libre de 9,7 y 3 años. Para empezar a sostenerse en una nueva ciudad vio la necesidad de vender frutas en la calle para poder llevarles el sustento a sus hijos. Al cabo de un tiempo a Juan se le presentó la oportunidad de comprar mercancía y en la actualidad vende ropa de dama que confecciona su esposa, quien tiene el taller en su casa. Sin embargo los negocios de ambos se manejan aparte pues su esposa le confecciona a otros negocios del centro para poder tener recursos para su familia. Juan además de vender la ropa que le confecciona su esposa, vende minutos de celular, ya que el sector donde tiene su negocio es un lugar muy transitado. Solicita el crédito para surtir con más mercancía (ropa de dama) su negocio.
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.