Julio is a hardworking man who has sold crafts from his stall in the center of town for 28 years. Some of the crafts he makes himself because he has attended training courses in leatherwork and shoe making offered by a government organization.
Julio wishes to use the loan money to buy supplies such as leather and other materials to make sandals, wallets, and belts as well as other items. His dream is to have larger premises where he can both make and sell the products. He also would like to grow his business and increase income.
Julio es un hombre trabajador dedicado desde hace 28 años a la venta de artesanías en un local en el centro de la ciudad, algunas de estas las fabrica él mismo, pues ha hecho cursos de marroquinería y calzado en una entidad gubernamental que presta los servicios de formación. Julio quiere invertir su crédito en la compra de materia prima para las artesanías (cuero y material para fabricar sandalias, billeteras, correas y demás artículos de cuero), y en otro surtido ya elaborado. Su sueño es tener un local más grande, desde el que pueda producir y vender en el mismo sitio, además de hacer crecer su negocio y mejorar sus ingresos.
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.