Luis Esteban is 52 years old, and has been breeding and fattening chicken for 5 years, a business that he inherited from his father. Currently he counts on a shed in which he shelters 350 animals. This trade turned into the income with which he sustains his wife and his two children who are 17 and 21 years of age. His major dream is to be able to enrol his oldest son in university, because of the fact that he already finished his secondary school studies. He is requesting a loan with which he hopes to increase his installed capacity and to pay for care in order to finish fattening his chickens and be able to sell them for a better price. His major difficulty has been the plagues that have resulted in many chickens dying and caused great losses for him.
Luis Esteban de 52 años de edad, se dedica desde hace 5 años a la cría y engorde de pollos, actividad que heredó de su padre. En la actualidad cuenta con un galpón en el que alberga 350 animales, este oficio se ha convertido en su entrada económica con la cual sostiene a su esposa y a sus dos hijos de 17 y 21 años de edad. Su mayor sueño es poder ingresar a su hijo mayor a la universidad, debido a que ya terminó sus estudios secundarios. Se encuentra solicitando un crédito con el que espera incrementar su capacidad instalada y comprar cuido para terminar de engordar sus pollos y poderlos vender a un mejor precio. Su mayor dificultad han sido las pestes que hacen que muchos pollos se mueran ocasionándole grandes pérdidas.
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.