Héctor is 32 years old and is a father to a nine-year-old son. Héctor fights every day so that his son can get ahead. Héctor is from a family of peasants and, thanks to his father, learned about all sorts of country work from a young age. Héctor currently has avocado and bean crops, as well as two dairy cows. He sells his milk to his neighbour and sells the harvest at the local market. Héctor is a booming and humble and hard-working man. In spite of the obstacles that he meets, he is always willing to try to get ahead. Héctor is applying for his loan to buy a dairy cow. With another cow he can increase production and, therefore, his income from sales. Through his work, Héctor wants to continue fighting for his dream of expanding his milk business. This will allow him to have a higher income for his family and to give his son the opportunity to have a better education and improve his well-being.
Héctor a sus 32 años de edad, es padre de 1 hijo de 9 años, por el que lucha día a día para sacarlo adelante. Nació en el seno de una familia campesina, en la que aprendió todas las labores del campo desde niño, gracias a las enseñanzas de su padre. Actualmente posee cultivos de fríjol y aguacate, además posee 2 vacas productoras de leche, el líquido obtenido a diario lo vende a un vecino y la cosecha recolectada la ofrece en el mercado local. El cliente es un hombre pujante, humilde y trabajador, a pesar de los obstáculos que se le presentan siempre está dispuesto a salir adelante. Solicita el crédito con el fin de ajustar el dinero para comprar una vaca productora de leche, con la cual podrá aumentar su producción y por ende sus ingresos por venta. De esta forma, Héctor desea seguir luchando para cumplir el sueño de ampliar su negocio lechero, que le permita tener mejores ingresos para su familia y así poder dar a su hijo la oportunidad de tener una mejor educación y bienestar.
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.