Fredy’s a 31-year-old man who works transporting all sorts of merchandise: furniture, farm products, building supplies thanks to his animal powered wagon. His greatest dream is to have several wagons and horses to generate employment for his family that he wants to provide a better quality of life for.
At present, he needs access to a loan to buy another wagon and another horse so that besides improving his family income he will be able to provide employment for one of his younger brothers who is unemployed and needs to start producing to support himself.
Fredy es un hombre de 31 años, dedicado a transportar todo tipo de mercancía, trasteos, productos agrícolas y material de construcción, gracias a su vehículo de tracción animal. Su mayor sueño es tener varios coches y caballos para generar empleo para su familia, para quien anhela una mejor calidad de vida.
En este momento necesita acceder a un crédito para comprar otro coche y otro caballo y así, además de mejorar los ingresos familiares, tendrá la posibilidad de brindarle empleo a uno de sus hermanos menores, quien se encuentra desempleado y también requiere empezar a producir para obtener su propio sustento.
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.