Ulziybayar T. is a 45-year-old married man with three children aged 12-18. All his children go to a local school. His family lives in a "ger" (traditional nomadic housing, like a yurt) district on a plot of land he owns in Arhangay, one of Mongolia's central provinces.
Ulziybayar is a plumber. He gets orders from local residents to fix their water pipes and toilets. Besides working as a plumber he has been running a plumber's workshop during the past 18 years. Ulziybayar purchases plumbing supplies at a wholesale prices from Ulaanbaatar, the capital city, and resells them to local residents or institutions at retail prices. With the profit he improved his living conditions dramatically. Now his working capital has reached 5 million tugrugs (equal to $3,500). He requests a loan to purchase plumbing supplies for his 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.