Fifty-five-year-old Melba is a peasant and lives with her husband and only son. She has worked in agriculture from a young age and, with her husband, she owns coffee crops on their two plots of land. They sell their harvest in the market and are able to earn the necessary money to cover costs and pay for household necessities. Melba is a strong woman and fights to overcome obstacles. With these qualities she has been able to achieve her objectives. Melba is on her seventh loan cycle and is applying for a loan in order to buy farming supplies (such as manure, fertilisers, and fungicides) which are necessary in order to prepare the land for harvest. These products will allow Melba to have a higher quality products and will give her a higher income from sales. Melba wants her work to be more profitable and more sustainable so that she can have a better quality of life and enjoy better well-being and more financial stability with her husband and son.
Melba es una mujer campesina de 55 años de edad, vive con su esposo y su único hijo. Desde muy joven se ha dedicado a la agricultura y actualmente, en compañía de su esposo poseen cultivos de café en 2 lotes de tierra de su propiedad y la cosecha recolectada es vendida en el mercado, de esta manera genera los recursos necesarios para solventar los gastos y necesidades básicas de su hogar. La cliente se caracteriza por su pujanza y tiene un espíritu de superación que le ha permitido lograr los objetivos que se propone. Solicita un séptimo ciclo de crédito que desea invertir en la compra de insumos agrícolas (abonos, fertilizantes, fungicidas) que son necesarios para preparar la tierra para la temporada de cosecha, lo que le permitirá recolectar un producto de mejor calidad y le generará un incremento en los ingresos que recibe por las ventas. Melba desea que su actividad sea más rentable y sostenible en el tiempo para así poder lograr tener una mejor calidad de vida y disfrutar con su esposo y su hijo de un mejor bienestar y estabilidad económica.
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.