Oyuntsetseg S. is a widow living with her mother and son in Ovorhanghay, one of Mongolia's central provinces. Her son is a student in a local technical college where he is learning carpentry. Oyuntsetseg runs a small barber shop located in a local shopping mall. She has been running her business since 2003 and plans to expand her business soon. Since her barber shop is the only source of income for her family, she works hard and does her best to earn money. In the future, she hopes to run her own full-service salon. She requests a loan to purchase hair products and equipment such as hair dye and dryers.
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.