Carlos is 19 years old and lives with his parents on a loaned farm. He began learning agriculture when he was young and thanks to his father’s teachings he has been a farmer all his life. He is currently working as an employee, raising flowers, and also raises his own potatoes and beans and receives his father’s support. He sells his harvest in the plaza market where he lives and he has been able to obtain resources to support the finances in his home. Carlos is a dynamic, active, enthusiastic young man with many plans. He is always searching for opportunities that will allow him to get ahead, but he decided to ask for this loan so he can buy farming supplies in quantity (fertilizers, irrigation, fungicide) so he can take advantage of the discounts he gets for paying in cash, allowing him to continue caring for his crops and have a good quality harvest that he can sell at a better price. This way he can increase his profit margin, continue supporting his household finances, and continue investing in his business. He will be able to grow his business and have the chance to provide employment to other farm workers in his sector, so he can not only improve his own family’s quality of life, but also others’.
Carlos, a sus 19 años de edad, vive con sus padres en una finca prestada. Desde pequeño comenzó a conocer las actividades agrícolas, gracias a las enseñanzas de su padre que toda la vida ha sido agricultor. Actualmente se dedica a laborar como empleado en un cultivo de flores, actividad que alterna con la agricultura de manera independiente, pues posee cultivos de papa y fríjol y recibe el apoyo de su padre; los productos que cosechan son vendidos en la plaza de mercado del pueblo donde reside y es así como ha logrado obtener recursos para aportar a la economía de su hogar. Carlos es un joven dinámico, activo, entusiasta y con mucha proyección, siempre va buscando oportunidades que le permitan avanzar, por eso se decide a solicitar el crédito, con el fin de invertirlo en la compra de insumos agrícolas al por mayor (abonos, riegos, fungicidas), aprovechando los descuentos que recibe por pago de contado para continuar con el cuidado de sus cultivos y sacar una cosecha de buena calidad que permita vender a un mejor precio sus productos y así mejorar el margen de ganancias, con lo que podrá seguir aportando a la economía de su hogar y seguir invirtiendo capital a su negocio, pues de esta forma lo podrá hacer crecer y tendrá la posibilidad de brindar oportunidades de empleo a otros campesinos de su sector, así mejorará no sólo la calidad de vida de su familia, sino la de muchas otras personas.
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.