Jairo, 59, worked as an employee for different companies in the city for more than fifteen years. When he lost his job, and aware of his obligations at home, he decided to start his own business and sell watches as a street vendor. Thirteen years ago, the City Hall of Medellín, Colombia, relocated him in an establishment in the city’s center, where he now offers a more formal kind of service. With this activity, he has been able to improve his economic condition and offer his family better life opportunities.
Jairo is requesting a loan to stock his business: watches, radios and remote controls for sound systems and TV sets. His intention is to increase his sales and his income to support his family.
Jairo de 59 años de edad, laboró por más de 15 años como empleado en diferentes negocios de la ciudad, tras quedarse sin empleo y con la obligación de su casa a cargo este hombre, tomó la determinación de auto-emplearse y comenzó a vender de manera ambulante relojería. Desde hace 13 años la Alcaldía de Medellín, Colombia lo reubicó en un local del centro de la ciudad en donde sigue con su actividad de manera más formal. Con esta, ha logrado mejorar su condición económica y ofrecerle a su familia mejores oportunidades de vida. Hoy se encuentra solicitando un crédito que destinará en la compra de surtido (relojes, radios y controles para equipos de sonio y televisión) con el fin de aumentar sus ventas y generar mayores ingresos para el sostenimiento de su hogar.
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.