Cruz Elena, age 57, is a single mother, and she has one child. When she was a young woman she learned the art of sewing, and she devotes herself to this. She does this in order to get her son ahead and to be able to give him an education.
She started her business of sewing garments and dressmaking over ten years ago. She learned everything having to do with seat covers, pillows and curtains. This has allowed her to generate greater income and to be more competitive in the market.
Her greatest wish is to get an industrial overlock machine. This would allow her to increase her productivity level, and later on she would be able to buy a house. In order to fulfill her dream, she is requesting a loan because she does not have her own resources.
Cruz Elena de 57 años de edad es madre soltera de un hijo. Desde joven aprendió el arte de la confección y se dedicó a este, con el fin de sacar a su hijo adelante y poderle ofrecer una educación. Hace más de 10 años montó su negocio de confección directa y modistería, aprendió todo lo relacionado con la coginería, almohadas, cortinas lo cual le ha permitido generar mayores ingresos y ser más competitiva en el mercado. Su mayor deseo es conseguir una máquina fileteadora industrial la cual le permitirá incrementar el nivel de productividad y poder comprar más adelante una vivienda. Para cumplir su sueño ella se encuentra solicitando un crédito debido a que no cuenta con los recursos propios.
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.