Tungalag B. lives with her husband and one of her two sons in the Bayanzurh district of Ulaanbaatar, the capital city of Mongolia. One of Tungalag's sons is married and does construction work in South Korea. It is common in Mongolia to go to South Korea and work in the construction sector. This kind of work does not usually require any language or advanced skills and pays more than other alternatives in Mongolia. Tungalag has a small retail business selling women's and men's apparel. She travels to Ereen, a Chinese border town where many products are imported, to buy cheap high quality women's and men's clothing. She sells clothes at the stall that she rents in the Narantuul market, the largest open market in Ulaanbaatar. For the last three years, she has been running her business successfully. When she is away at Ereen, her husband sits at the stall to sell the clothes. In the future, she hopes to afford to purchase a microbus, which her husband can use to contribute to the family's income. She requests a loan to purchase more clothing from Ereen, China.
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.