With more than 35 years’ experience, Gonzalo has been making women’s and men’s shoes to distribute to shoe merchants in the city of Medellín. He carried out this activity from a small space he’s set up to do so in his living room; he works every day from 7am until 6pm and with much effort and dedication manages to earn income to support his wife and son. At the age of 56, Gonzalo needs to buy raw materials like fabric, thread, glue and shoe soles to work with, to complete his production and to fill customer orders. In the short run, Gonzalo dreams with expanding his business and setting it up in a space apart from his house.
Con más de 35 años de experiencia, el señor Gonzalo se dedica a la fabricación de calzado para dama y caballo para la distribución a comerciantes de zapatos de la cuidad de Medellín. Esta actividad la realiza desde un pequeño espacio adecuado en la sala de su casa trabajando todos los días desde las 7:00 a.m hasta las 6:00 p.m con mucho esfuerzo y dedicación con el ánimo de conseguir los ingresos para el sostenimiento de su esposa e hijo. A sus 56 años, el señor Gonzalo requiere de la compra de materia prima como telas, hilos, pegantes y suelas de zapato con lo cual poder trabajar, sacar adelante su producción y cumplirle a sus clientes los pedidos. A corto plazo, el señor Gonzalo sueña con ampliar su negocio y adecuarlo en un local independiente de su casa.
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.