Gonzalo is a 56 year old man. He is the father of 4 children whom he has gotten ahead alone, since he never married. Since he was young, he has known about agricultural work because he has always lived in the country. Right now, he has sugar cane and coffee crops on a little plot of land he owns. When he harvests the crop, he sells it and that is how he generates income to support his home. “I like the country a lot. My children and my work motivate me to fight every day to get ahead. Sometimes it is very hard because the materials are very expensive and the weather is very variable and sometimes it harms my crops". With these words, Gonzalo expresses the difficulties he has gone through, but this doesn't discourage him and he is always able to overcome obstacles. That is why he is seeking help with the loan. He wants to invest it in buying agricultural materials (fertilizer, pesticide, fungicide, and seeds) to continue doing the activity that allows him to generate income. Gonzalo has as a goal to expand his crops to have a more abundant harvest and in this way have enough resources to offer his children a better quality of life.
Gonzalo, un hombre de 56 años de edad, es padre de 4 hijos, a los cuales ha sacado adelante solo, ya que nunca se casó. Desde joven conoce las labores agrícolas porque ha vivido siempre en el campo. Actualmente tiene cultivos de caña y café en un pequeño terreno de su propiedad, cuando recoge la cosecha la vende y es así como logra generar ingresos para llevar el sustento diario a su hogar. “A mí me gusta mucho el campo, mis hijos y mi trabajo me motivan para luchar todos los días para salir adelante, a veces es muy duro porque los insumos son muy costosos y además el clima es muy incierto y a veces me daña los cultivos”; con estas palabras, Gonzalo expresa las dificultades por las que ha pasado, pero esto no lo desanima y siempre logra superar los obstáculos. Por esto busca apoyo con el crédito, que desea invertir en la compra de insumos agrícolas (abonos, pesticidas, fungicidas, semillas) para continuar realizando la actividad que le permite generar ingresos. Gonzalo tiene como meta ampliar sus cultivos para tener una cosecha más abundante y de esta manera tener los recursos suficientes para brindar una mejor calidad de vida a sus hijos.
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.