Luis is a grown man, father of five adult children. For more than 30 years he has worked selling and repairing umbrellas in a shop in the city of Medellín. He will invest this loan in the purchase of umbrellas and fabric to repair umbrellas, to later sell them at a higher price and, in this way, earn a higher income to take care of his family. Luis dreams of making his business grow and improving his family’s income, and making his business well-known for the quality of his work.
Luis es un hombre adulto, padre de 5 hijos mayores de edad, quien hace más de 30 años se dedica a la venta y reparación de sombrillas, en un local en la ciudad de Medellín. El crédito lo invertirá en la compra de sombrillas y tela para la reparación de estas, para luego venderlas a un mejor precio y así generar más ingresos para el sustento de su familia. Luis sueña con hacer crecer su negocio y mejorar los ingresos de su familia, así como hacer que su negocio sea reconocido por la calidad de su trabajo.
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.