Otgonbat T. is a 38-year-old married woman who has two children. Her family lives in a "ger" (yurt) district in Ulaanbaatar, the capital city of Mongolia. Both of her children go to the local elementary school.
In 2000, she started a retail business selling costume jewelry, such as earrings, necklaces, and rings, for teenage girls. Her stall is near the central door of the Narantuul market, the biggest four-season outdoor market in the capital city. Because of its location, at least 10% of market visitors stop by her stall, and most of them purchase some of the small items that she sells. Once or twice a year, Otgonbat goes to Ereen, a city on the Mongolian-Chinese border, to purchase more small accessories at wholesale prices. To save travel expenses, she asks her friends who go to Ereen to buy goods for her.
With the profits from her business, her husband has built a house on the plot of land they own. Otgonbat says, "Because my husband and I are very busy, we cannot take good care of our children. Thus, we are planning to hire a saleswoman for our business. I hope, then, that we can spend more time with our children."
Otgonbat is requesting a loan to purchase goods for her small 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.