Señor John Fredy is 25 years old. For the past four years, he has owned a business, which makes and sells arepas [flat, round, unleavened patties made of cornmeal or flour which can be grilled, baked, boiled, or fried]. He has been able to do so thanks to his mother who has always supported him.
In his arepa factory, John Fredy produces 1,200 arepas daily. At present, he needs to purchase a vehicle in which to transport the finished product so that he can fulfill all of his orders on time and offer better service. Having a vehicle, John Fredy will be able to improve both his income and the quality of life for his mother and himself. In the future, John Fredy dreams that his arepa factory will be well positioned in the market.
El señor John Fredy a sus 25 años de edad es propietario de un negocio de fabricación y venta de arepas desde hace cuatro años, esto es gracias a la madre del señor John Fredy quien lo ha apoyado siempre. En su fabrica, el señor John Fredy produce 1200 paquetes diarios y actualmente requiere de la compra de un vehiculo en el cual pueda transportar su producto terminado y así cumplir a tiempo con todos sus pedidos y ofrecer un mejor servicio. Con lo anterior, el señor John Fredy podrá mejorar sus ingresos y la calidad de vida de él y su madre. A futuro, el señor John Fredy sueña con tener su fabrica de arepas bien posicionada en el mercado.
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.