Davaasuren J. lives with her husband and 20-year-old son in Arhangai Province, one of Mongolia's central provinces. Their son goes to a local university.
Davaasuren has a small retail business in clothing. She usually travels to Ereen, China, a border town from where many inexpensive Chinese products are exported, and purchases inexpensive yet attractive clothing for women and men.
She started her business in 2005 with a loan of 700,000 MNT (approximately $500). Within two years, she was able to buy a small car for her family with the business profit. Today, her business has expanded; business capital has exceeded 2,000,000 MNT. She says that she works hard on her business in order to make sure that her son receives a good education without any financial strains.
She requests a loan to purchase more clothes 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.