By supporting this loan, you're helping internally-displaced people in the rural, post-conflict regions of Colombia develop their businesses and provide for their families. Currently, 15% of Colombia's population has been displaced by the civil war and does not have access to financial services. This loan helps low-income, displaced Colombians restart their lives and integrate into their new communities.
About Interactuar:
If this loan is structured on Kiva as a bullet loan (which means a single payment is required at the end of the loan term), it is because Interactuar sometimes has to offer borrowers loans with a variable interest rate that fluctuates with the market rate. In these cases, 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.
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