Odsuren L. is a 64 year-old married woman. She lives with her husband in Arhangay, one of Mongolia's central provinces. All her children are grown up and live with their own family. L. and her husband Davaa are both retired. Since their pension amount of 280,000 tugrugs (equal to $ 200 USD) is not enough to live by, they have been running a retail business in selling food products through a small food booth they own. in 2001, when she began to run her tiny business, her working capital was 100,000 tugrugs. Now her working capital has increased and reached 1 million tugrugs. Odsuren purchases a variety of food products such as candy, biscuits and tobacco at wholesale prices from the local market to resell them at retail prices. With this loan, she will buy food products 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.