Miriam is 49 years old, married and works making shoes and handbags, has done this for many years, she started it after taking courses offered in the area and saw a good business opportunity with this activity. After completing the finished product she goes out to sell to her family, friends and neighbors of the area where she lives, this way she earns income to help with the economic burden at home. She is judicious, helpful and devoted to her work, but the need of cash has caused materials to get low and production to be reduced, this is why she decided to take the loan and increase her working capital, buy materials (leather, fabric, glue, thread, molds) to have enough on hand and meet her clients requests, satisfy their needs and taste. Miriam dreams with making her business grow and make it become a great shoe factory recognized for its excellent service and quality, that allows her to offer job opportunities and this way also increase income and contribute to the support of her home and improve her quality of life.
Miriam con 49 años de edad, es una mujer casada y se dedica a la fabricación de calzado y bolsos hace muchos años, esta actividad la comenzó a realizar luego de capacitarse con cursos que ofrecían en la región y vio una buena oportunidad de negocio con esta labor. Luego de tener los productos terminados, sale a venderlos a sus familiares, amigos y vecinos del sector donde reside y de esta manera obtiene ingresos para apoyar la carga económica en su casa. La titular es una mujer muy juiciosa, servicial y entregada a su trabajo, pero la falta de dinero ha hecho que los materiales se agoten y la producción disminuya, por eso se decide a tomar el crédito, para aumentar su capital de trabajo, comprar insumos y materiales (cuero, tela, pegante, hilos, molduras) para tener disponibilidad suficiente, poder cumplir con los requerimientos de sus clientes y satisfacer sus gustos y necesidades. Miriam sueña con hacer crecer su negocio y convertirlo en una gran fábrica de calzado que sea reconocida por su excelente servicio y calidad en los productos, que le permita poder ofrecer oportunidades de empleo y así aumentar sus ingresos y poder contribuir para el sostenimiento de su hogar y mejorar su calidad de vida.
More information about this loan
By funding this loan, you are promoting entrepreneurship in remote regions, including areas recovering from guerilla warfare in Colombia, and helping to reverse the rural exodus which occurred in the past decades when a the rural population fled their countryside homes for the safer cities.
This Kiva loan was created by Kiva's field partner Interactuar specifically for Kiva funding, in an effort to reach more borrowers in rural areas. Most of the Interactuar's lending operations are focused in urban parts of Medellin. But this loan product is designed to provide working capital to riskier agricultural businesses who have been traditionally excluded from the finance sector.
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.