Bujinlham G. is 51 years old and lives with her husband in Arhangai province, one of Mongolia's central provinces. Her two sons have already grown up and live with their own families. Bujinlham has a small business retailing dairy products. She rents a small stall in the local food market and sells dairy products such as milk, cheese and other milk products. Since the start in 2003, her business has done well; her business capital has increased from 500,000 MNT to 2,500,000 MNT ($1 USD = 1,450 MNT). Her husband also helps in her business with purchasing and collecting dairy products from the wholesale market. In the future, she hopes to expand her business by adding more diverse products to her stall. With the profit, together with her husband, she has started building a house on the plot of land that they own. They are planning to finish building their house before year-end. She requests a loan to purchase more dairy products for her business.
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.