In search of alternative ways to earn money which would permit him to continue contributing in a worthwhile way to the family income, Fabio used his experience as a merchant and decided to launch, after eight years of selling fruits and vegetables, little by little, a store.
Because of a problem that presented itself, Fabio saw the necessity of getting a loan from a friend who agreed to do it but at a very high rate of interest. This is why he has been losing so much income and why he needs a new loan that permits him to pay off the balance so his family and his business can move forward.
En la búsqueda de alternativas para generar ingresos que le permitieran continuar aportando de manera efectiva a los ingresos familiares, el señor Fabio recurrió a su experiencia como comerciante y opto por emprender hace ocho años una venta de frutas y verduras que poco a poco se ha conformado en una tienda. Dado una dificultad que se presentó, el señor Fabio se vio en la obligación de realizar un préstamo a un amigo quien accedió a este pero a tasas de interés muy altas, por lo que ha estado perdiendo mucho capital y por lo que requiere de un nuevo préstamo que le permita cancelar dicho saldo y así poder sacar adelante su negocio y familia.
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.