This loan will be used to maintain equipment (improve the lathe by adding an axle and mandrel), to buy supplies (rubber tyres, packing bags) and to pay for leafleting. This will give Henry more drive to continue with his business and the leaflet will bring more customers. Sales and income will therefore increase.
Henry's aim to expand his business, but in premises separate from his house. His business would then be easier to access for the public and he will be better known in the market. His living conditions will improve then and Henry will be more able to support his young son.
El crédito será invertido en el mantenimiento de su maquinaria (mejorar el torno, añadir eje y mandril), comprará insumos (llantas de caucho, bolsas para empaque) y pagará para sacar volantes publicitarios; esto le dará un impulso para seguir con su negocio y se dará a conocer permitiendo la llegada de nuevos clientes, así mejorará sus ventas y el nivel de ingresos que recibe.
Henry tiene como propósito ampliar su negocio pero en un local comercial independiente de su vivienda, en el que pueda estar más asequible al público y así lograr un reconocimiento en el mercado y un mejoramiento en sus condiciones de vida, facilitando el sustento de su pequeño hijo.
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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