Juan is married and lives in a town on the outskirts of the city. Several years ago he launched his own greengrocers in which he sells vegetables, fruits, leafy greens and other items. His dream is to be able to expand his store and to have a bigger supply to provide to his beloved clientele.
Juan is requesting a loan which he will invest in the purchase of a large variety of fresh products at whole sale at a lower cost. This will allow him to increase his clientele and thus his revenue, improving his quality of life and fulfilling his obligations.
Juan es casado, vive en un municipio en las afueras de la ciudad, desde hace varios años emprendió su propio negocio de legumbrería en la cual distribuye verduras, frutas, hortalizas y otros, su sueño es poder ampliar su negocio y tener un mayor surtido para brindarle a su querida clientela. Juan pasó una solicitud de crédito el cual invertirá en la compra al por mayor de una gran variedad de productos frescos y a menor costo, lo que le permitirá aumentar su clientela y por ende sus ingresos, mejorando asi su calidad de vida y cumpliendo con sus obligaciones adquiridas.
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.