Otilia Del Carmen
She’s a kind, humble, hardworking person who strives to move her children forward; they are her main motivation. She’s asking for the loan aiming at using it to buy ingredients to prepare her dishes (meat, vegetables and sauces, among others). In this way, she’ll have the supplies on hand to prepare the meals and satisfy customer demand on days between payday because she’s often lost sales because she was unable to extend credit because she lacked enough capital to stock up on supplies daily.
Otilia dreams with continuing to make progress and to strive with dedication and effort to have a food stand outside the trout farm to earn daily income and be able to continue meeting basic family needs and to see to her children’s well-being and their education.
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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