Eight months ago he started to grow flowers as a way to earn extra income. He offers a variety of products in the market. He currently grows beans and potatoes on a piece of family land and he also grows hortense flowers on leased land. He gets help from an employee he hires by the day and during planting and harvesting he hires to more people.
He’s a persevering, active, very hardworking man who is always seeking opportunities to get ahead overcoming various external obstacles like the high cost of supplies he needs and winter which occasionally has damaged his crops directly affecting his finances.
The loan he’s requesting will be used to buy seed, manure, irrigation and fertilizer to give continuity to his work and obtain a more abundant harvest that will command a higher market price significantly increasing his income. Javier wants to reach his goals strengthening his business so that it will be more profitable thus improving his family’s 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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