Andrés is a hardworking young man. For eight months, he has worked selling products from a multinational company via catalog (tools for personal and home hygiene, vitamins, etc.) His customers are family members, friends and residents of a town in Eastern Antioquia. He wants to invest the loan in buying merchandise to offer his customers a wider variety of products and better service. Andrés dreams of having his own locale where he can display his products in an organized way and to have recognition in the area and improve his income.
Andrés es un joven trabajador, quien hace ocho meses se dedica a la venta de productos de una multinacional por catálogo (implementos para el aseo personal y de vivienda, vitaminas, etc). Sus clientes son familiares, amigos y vecinos de un municipio del oriente Antioqueño; quiere invertir el crédito en la compra de mercancía, con lo que podrá ofrecerle a sus clientes mayor variedad de productos y mejorar el servicio. Andrés sueña con tener su propio local, en el que pueda mostrar los productos de una manera organizada, tener reconocimiento en la zona 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.