Guillermo has been a farmer for more than 30 years. He makes his living growing bananas, yucca and yams. He sells his produce in the neighboring towns and to buyers who come to his area. Guillermo plans to invest his loan in the purchase of agricultural supplies (larvicide, fungicide, compost) which will allow him to increase his production and meet the current demand for his produce. It will also increase his income. Guillermo hopes to improve the quality of his crop and improve his income as well as his standard of living.
Guillermo es un agricultor que desde hace más de 30 años se dedica al cultivo de plátano, yuca y ñame, para vender el producido en los pueblos vecinos y a los compradores que llegan a la zona. Pretende invertir su crédito en la compra de insumos agropecuarios (larvicidas, fungicidas, abonos), lo que le permitirá aumentar su producción y satisfacer la demanda actual de sus productos, generando mejores ingresos. Guillermo sueña con mejorar la calidad de sus cultivos, mejorar sus ingresos y su nivel de vida.
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.