Olga learned this business by working in it and with the help of her husband and an employee has been able to maintain it. But due to financial difficulties she has not been able to invest money to make the business grow, since up to now she has only made enough to support her household. So she is requesting this loan to expand and fix-up the business and to buy stock (soft drinks, coffee, beer, pastries). Doing this she can improve the image of the business which will change the customers perception of it. She will also have a variety of products to offer, which will be reflected by higher sales and in the end, greater profits.
She can also advance towards the accomplishment of her main goal, which is to expand her business, stock it well, and in the short term install a few billiard tables to increase the influx of clients. With which she can enjoy more economic stability, provide better education for her children and enjoy a higher standard of living for her family.
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 InformationThis 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.
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