Chimedregzen N. lives with his wife and two children in Arhanghay province, one of Mongolia's central provinces. In 2000, with his wife, he started renting a small stall in the clothing section of the local retail market. Since its inception, the business has been doing quite well and they have gained solid experience in the clothing retail business. Chimedregzen goes to Ereen, a Chinese border town, and purchases cheap wholesale clothing once or twice every two months, while his wife works as a saleswoman at the stall. Besides the clothing business, Chimedregzen exports unprocessed cashmere to China when demand is high in April and May. As the cashmere season approaches, he requests a loan to purchase clothes from China and buy some unprocessed cashmere to export to China. In the future, he dreams of having his own clothing store with his wife.
This loan is being administered through XacBank, a Mongolian for-profit microfinance institution. XacBank is located in every province of Mongolia, reaching some of the most rural micro business clients. With this Kiva loan, there is an opportunity for the entrepreneur to get a savings account including 9% of the interest if they pay back the loan on time. This is a special savings account that XacBank has specifically prepared for the Kiva loan borrowers to promote savings habits.