José and his partner have a two-year old son. José started working in retail businesses when he was just a lad and he used the experience he gained to start his own business. He opened his first business in a small town but the violence there forced him to the city where he started over. José wants to build a bigger, more-established business and this loan will help. He'll be able to buy a wider range of merchandise and deliver a better and more efficient service to his customers. The investment will allow him to gradually build capital so that he can better provide for his family.
José, convive con su pareja y tienen un niño de dos años, desde muy joven ha trabajado en tiendas, por ello su experiencia, inició su propio negocio en un municipio del departamento, pero por motivos de violencia social, se vio en la necesidad de trasladarse para la ciudad, donde continúa con dicha actividad, José sueña con tener un negocio más amplio y consolidado, con el préstamo que adquiera, tendrá la oportunidad de comprar mercancía de mucha variedad para ofrecerle a sus clientes un mejor y eficaz servicio, incrementando el capital para con este darle a su familia todo lo que necesiten para mejorar su nivel 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.