Luis Fernando is a 28 year old entrepreneur who started his own business selling liquor on Thursdays, Fridays, Saturdays, and Sundays after 6pm in a small shop near his home. This business came out of the need to increase his income in order to help his family. Luis Fernando needs to buy additional stock in order to meet demand for New Year's. This will allow him to increase his sales and therefore his family's quality of life. His dream is to have his own mini market.
El señor Luis Fernando a sus 28 años de edad es un emprendedor quien inició su propio negocio de venta de licor los días jueves, viernes, sábados y domingos después de las 6 de la tarde en un pequeño local cerca de su casa. Este negocio surgió de la necesidad de mejorar los ingresos económicos para poder apoyar a su familia. El señor Luis Fernando requiere de la compra de surtido con el fin de poder suplir la demanda de fin de año y así mejorar sus ventas y con estas la calidad de vida de su familia y cumplir su sueño de tener su propio mini 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.