In his work life Luis has made a living on various farms in the area where he lives. About 10 years ago, however, he decided to go out on his own and set up a grocery store where he works every day from 8 a.m. until 9 p.m. This is how he earns enough money to support his household.
Luis is a thriving, persevering, and kind man. He works with care to get his business ahead, overcoming various difficult moments, especially the public type of problems that come up and affect his sales and, consequently, his income. This didn't get in the way of his perseverance, however, and little by little the situation has improved.
This is what motivates Luis to request the loan he wants to invest in buying stock wholesale (oil, cleaning products, grains, pasta, pastry, cookies, canned goods, and other products). He also wants to buy display cases and shelves to improve the storage capacity of his business and offer a greater variety of products to satisfy his customers' tastes and needs.
This way Luis will increase his sales and his income, and have the possibility of moving toward his dream of expanding his business and having it well stocked. This will generate greater income for him, and he and his family will enjoy a better quality of life and well-being.
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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