This client is an energetic, active, persevering, and hardworking man. He has kept his business going in spite of the problems that arise, since his business is located in one of the areas with highest crime incidence in the city and he is exposed to disorderly conduct and altercations among neighborhood gangs. He must also pay fees to the different groups operating outside the law in order to keep his business open to the public. Even so, he has managed to overcome the situation and has gradually made progress.
The loan he is requesting is to invest in purchasing a display case and wholesale products to stock his business (dairy, grains, eggs, meat, cookies, pastries, sodas, and other items). This will allow him to improve his store's image and attract more customers, and he will also have a wider variety of products available for sale. This will result in an increase of sales and income, which will allow him to continue providing for his family.
John's dream is to strengthen and expand his business, so that in the near future he can buy his own retail space where he could offer employment opportunities and improve financial stability for his family's wellbeing and to increase their quality of life.
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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