Jose is an older man who moved to the city over 30 years ago. He worked many years in construction but because of his age the work was too draining so he decided to go into business selling "guarapo" (sugar-cane liquor). He has been in business for eight years and things are going well for him. His goal is to expand the business and provide good customer service.
The loan he is requesting is to fix the machine he has and also buy ingredients (sugar cane, lemons, ice, etc.) to offer quality products. There is a lot of demand which generates a nice income so he hopes to be able to give his children a good education for the future as well as provide a quality lifestyle for his family.
José es un adulto mayor que desde hace más de 30 años se vino para la ciudad, se desempeñó muchos años en el sector de la construcción, pero a su edad ya era demasiado desgastante y por ello tomó la decisión de iniciar otra actividad como es la venta de guarapo, desde hace 8 años tiene su negocio y le ha ido muy bien, José sueña con ampliar su negocio y brindarle un buen servicio a su clientela, con el dinero solicitado él arreglará su máquina y también comprará materia prima (caña de azúcar, limones, hielo, etc) para ofrecer un producto de buena calidad, tiene mucha demanda y le genera buenos ingresos y puede de esta manera continuar brindándole a sus hijos una buena educación para el día de mañana y tener un bienestar familiar con mucha calidad 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.