Apolinar is 54 years old and lives with his wife. He has done farm work since he was very young, since it has been a family tradition, and his parents taught him everything that he knows today. Now he has crops on the farm where he lives, whose harvests are collected and sold in the market in the town. In addition, he offers chainsaw services. In this way he has obtained the income to bring sustenance to his family. This borrower is a vigorous and hard-working man, and every day he strives conscientiously to overcome the obstacles that he faces, especially those that affect his crops, such as the changing climate and the high costs of the supplies that he needs to care for his crops. Nevertheless, he has known how to advance and continue progressing. Now he is applying for the loan with the goal of investing it in the purchase of agricultural supplies (compost, pesticides, fertilizers, and seeds), with which he will be able to continue caring for his crops and prepare the land so that the harvest will be more productive. Thus he will increase his income and will be able to offer his family a better quality of life and a favorable economic stability.
Apolinar tiene 54 años y vive con su esposa. Desde muy joven se ha dedicado a las labores del campo, pues ha sido una tradición familiar y sus padres le enseñaron todo lo que hoy sabe. Actualmente posee cultivos en la finca donde reside, cuyas cosechas son recolectadas y vendidas en el mercado del pueblo, además presta el servicio de cortes con motosierra, de esta manera ha obtenido los ingresos para llevar al sustento a su familia. El cliente es un señor pujante, trabajador y cada día lucha con esmero para sobrepasar los obstáculos que se le presentan, especialmente los que afectan sus cultivos, como por ejemplo el clima cambiante y los altos costos de los insumos que requiere para cuidar sus cultivos, sin embargo ha sabido salir adelante y seguir progresando. Actualmente solicita el crédito con el fin de invertirlo en la compra de insumos agrícolas (abonos, pesticidas, fertilizantes y semillas) con lo que podrá seguir cuidando su cultivo y preparar la tierra para que la cosecha sea más productiva, así aumentará sus ingresos y podrá brindar a su familia una mejor calidad de vida y una estabilidad económica favorable.
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.