Update on Juan OrlandoJuan Orlando loves life. He is 60 years old and he feels alive and useful. He says, “As long as I have my health, I will never be short of work.” Every day he gets up very early to go to his fruit stall, located near the main city park in Amaga, Colombia. Even though his life is very complicated, because aside from working to support his household, he cares for his wife who suffers from psychological disorders and must take her medications. For this reason his expenses have gone up and his fruit business has not produced enough income to cover his expenses. Motivated by these economic difficulties, he finds himself asking for a loan so he can buy pork and fruit that will allow him to offer more products and generate better income that will allow him to improve his family’s quality of life.
Previous Loan DetailsJuan is a person who has always described himself as being very hard working and always wants to offer his family a better quality of life. Juan has spent much of his life selling pulses, fruit and vegetables because his father worked in this sector and taught him the ropes from an early age. Jua... More from Juan Orlando's previous loan »
Important InformationThis 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.
Concurrent and Successive Loans
Our Field Partners often work with borrowers over a series of loans as the borrowers build credit, take out bigger loans, and expand their businesses. In order to make it easier for our Field Partners to post loans for borrowers who have been listed on Kiva before, we allow them to post successive and concurrent loans for their Kiva borrowers. This means that our Field Partners are able to post a borrower's second, third, etc., loan on Kiva without having to re-enter all of the borrower's information.
This borrower has been listed on Kiva before, so you'll see an updated loan description, as well as excerpts of the original descriptions from earlier loans. Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Field Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These "add-on" loans are typically smaller than the borrower's primary loan and serve a different purpose. Because Field Partners can now post loans as successive and concurrent loans, you will be able to track borrower progress over time and see the various ways a borrower is working with our Field Partners through funds from Kiva’s lenders.
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