Gustavo is a 38-year old man. He lives with his wife and their two children, who are 1- and 7-years old respectively. Gustavo started doing agricultural work 25 years ago, which he learned thanks to his father. Today, the work provides his family's income. Currently, Gustavo has bean, pea and tree tomato plants on the farm where he lives. To earn an income, he sells his harvest in the town center. Gustavo is a hard-working, active and dedicated man. He is constantly looking for opportunities that will allow him to get ahead. That is why he is requesting a loan- to invest in the purchase of agricultural supplies (compost, fertilizers, pesticides and fungicides). With these supplies, he will be able to continue caring for his crop and harvest excellent quality produce, which will increase his sales and his income. All of this will help Gustavo to meet one of his main goals, which is to expand his crop in order to generate more income. This would give him more stable finances and provide his family with greater well-being and a better quality of life. It would also provide an excellent education for his young children.
Gustavo es un hombre de 38 años de edad, vive con su esposa y con sus dos hijos de 1 y 7 años. Desde hace 25 años comenzó a realizar las labores del campo, actividad que conoció gracias a su padre y que hoy le brinda los ingresos para el sustento diario de su familia. Actualmente tiene cultivos de fríjol, arveja y tomate de árbol en la finca donde reside y para obtener ingresos, él vende las cosechas en la plaza del pueblo. Gustavo, es un señor trabajador, activo y dedicado, siempre está en busca de opciones que le permitan salir adelante, por esa razón solicita el crédito para invertirlo en la compra de insumos agrícolas (abonos, fertilizantes, pesticidas fungicidas) para continuar con el cuidado de sus cultivos y así poder cosechar unos frutos de excelente calidad, para aumentar los ingresos por las ventas de los productos. Todo esto, le ayudará a Gustavo a cumplir uno de sus principales sueños, que es ampliar sus cultivos para poder generar mayores ingresos que le brinden una estabilidad económica, bienestar y calidad de vida a su familia y una excelente educación a sus pequeños 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.