Luz works for her business in the sales of arepas (traditional meal) with her husband. They distribute the arepas in small baskets in their town. With this business they generate the income necessary for the costs of their home. This has allowed them to have a better quality of life.
The greatest challenge that has always occurred in the business is the lack of capital to keep growing. Now that she has good orders from her clients, Luz is seeking a loan to purchase baskets to distribute the arepas and to purchase supplies to prepare arepas.
Her dream is to continue working in this business and continue to grow it in a way that can improve her income and thus improve the quality of life for her family.
Luz trabaja en su negocio de venta de arepas junto con su esposo las cuales reparten en unas canastillas por su municipio. Con este negocio generan los ingresos necesarios para el sostenimiento de los gastos de su hogar, y esto les ha permitido tener una buena calidad de vida. La mayor dificultad que siempre ha presentado en su negocio es la falta de capital para seguir creciendo, pero ahora que tiene buenos pedidos de sus clientes, Luz busca un préstamo para comprar canastillas para repartir las arepas y comprar insumos para la fabricación de las arepas.
Su sueño es continuar trabajando con este negocio y hacerlo seguir creciendo, de modo que pueda mejorar sus ingresos y así la calidad de vida para la 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.