Piedad is a humble woman and the mother of two children. She used to work making and selling tamales, meat pies and other food but decided to take a hairdressing course several years ago, and now cuts and colors hair, does manicures and other beauty procedures by visiting her clients at their homes.
She wants to use the loan to buy products for her work such as nail polish, towels, hair color and other items in an aim to expand her customer base and improve her income so she can give her family a better lifestyle.
Piedad es una mujer humilde y madre de dos hijos, que se dedicaba a la preparación y venta de tamales, empanadas y otros alimentos; pero desde hace unos años realizó cursos de estilista y ahora se dedica a hacer corte y tintura de cabello, arreglo de uñas y otros procedimientos de belleza a domicilio. Ella quiere invertir su crédito en la compra de elementos de trabajo como esmaltes, toallas, tinturas y otros, para poder ampliar su clientela y mejorar sus ingresos y darle un mejor nivel de vida a su familia.
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.