Joel is a 52-year-old man who works at his business of buying and selling scrap metal at one of the market plazas in the city. He divides his time between hauling materials to the market and visiting with his customers in the area. Joel is well-known at the plaza for his service and his honesty.
This loan will be invested in the purchase of steel and scrap metal. He intends to increase his earnings and replace his car with a larger one.
Joel es un hombre de 52 años, dedicado a la compra y venta de chatarra, se ubica en una de las plazas de mercado de la ciudad y desde allí trabaja, pero alterna su actividad con el acarreo de materiales y mercados a los clientes del sector. Joel es muy conocido en la plaza por sus servicios y honestidad. El crédito lo invertirá en la compra de acero y chatarra, con lo que pretende incrementar sus ingresos y cambiar su carro por otro más grande.
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.