Uuganbayar G. is 25 years old and is just married. In May 2008, he bought bicycle repair equipment for 1,700,000 tugrugs ($1,200 USD) and started repairing bicycles; he rents a small room at the central local market for his shop. Uuganbayar not only repairs bicycles bur also sells new bicycles. Before fall comes, he is planning to expand his business and purchase more bicycles from the capital city, Ulaanbaatar, where he goes every two months to purchase bicycles and spare parts at very cheap prices. His wife Batchimeg works as a saleswoman at a local food stall and is paid 150,000 ($110 USD) tugrugs per month. With this loan, he will purchase a variety of bicycles at wholesale prices to increase his 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.