Narantuya A. is 42, married, and has three children. Her family lives in Ulaanbaatar, the capital city of Mongolia. Her eldest daughter Dariymaa, 21, is a university student, the two younger ones, 13 and 18 years of age, are attending an elementary and high school. In 2000, together with her husband Shirmen, she started running a clothing business in a rental stall at Narantuul, the biggest four-season outdoor market in the capital city. She hires two tailors to make men's and women's coats and sport suits during the autumn, winter, and spring seasons. In summer, her eldest daughter helps her mother's business while having a vacation at home.
Narantuya pays each tailor 200,000 tugrugs ($1 USD = 1450 MNT) a month. Coat and sport suit designs are mostly created by Narantuya or her eldest daughter. With the profit, Narantuya bought three types of sewing machine last year. She also pays her eldest daughter's tuition every year. Their customers are mostly students and herders. During the summer, she makes a lot of winter clothes and reserves them to sell in fall and winter since winter is an active shopping season in Mongolia. With the loan, she is planning to buy fabrics to increase her business inventory.
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.