David, 52 years old, has five children and lives with his partner. He has spent his whole life in the countryside, where he learned farmwork, and today he grows a variety of crops on his small plot of land. He earns an income to support his family from harvesting and selling his crops in the market of the town where he lives. He is currently requesting this loan to buy agricultural supplies (manure, fertilizer, fungicides) at wholesale to take advantage of the lower prices and reduce the cost of the supplies. He will use the supplies to cultivate his crops and increase his crop yields, which will allow him sell his crops at a better price at market. That way he can keep working and in the near future expand his crops, generating higher earnings and offering his family economic stability and a better quality of life.
David tiene 52 años de edad, es padre de cinco hijos y vive en unión libre con su pareja. Toda su vida ha estado en el campo, donde aprendió las labores agropecuarias y, gracias a ello hoy en día posee diferentes cultivos en una pequeña parcela de su propiedad. Los ingresos para el sustento de su familia, los obtiene de la recolección y venta de la cosecha, que es ofrecida en el mercado del pueblo donde vive. Actualmente solicita el crédito para comprar insumos agrícolas al por mayor (abonos, fertilizantes, fungicidas) para aprovechar los descuentos que le realizan por compras de contado, disminuyendo un poco los costos de los insumos con los que podrá seguir cuidando sus cultivos y sacar una cosecha más productiva, que le permita venderla a mejor precio en el mercado. Así podrá seguir continuando con su labor para que en un futuro cercano pueda ampliar sus cultivos, que le generen mejores ingresos y darle a su familia una estabilidad económica favorable para disfrutar de una mejor 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.