Bat-Erdene B. is a 24-year-old auto repairman who lives in Arkhangai province in central Mongolia with his wife, a cashier and sorter at the local post office, and two-year-old son. B. has been working as an auto repairman since 1994, when he began helping his father repair vehicles at his new auto repair business. In 2003, B. inherited the business from his father and began running it himself. Even though he is young, he has developed good auto repair skills due to his many years of experience in the business, and has developed a reputation as a good repairman throughout his community. Another advantage to his business is the good equipment, tools and other assets, which he inherited from his father. This gives him many advantages over his competition. Because of these factors, Bat-Erdene has been able to improve his business and increase his working capital to 2,000,000 tugrugs (approx. $1381 USD) from 300,000 tugrugs (approx. $207 USD) when he started. Bat-Erdene has used the profits from his business to build a two-story house for him and his family. For the future, Bat-Erdene says, "My dear wish is to expand my business by providing quality service". He is requesting a loan of 2,000,000 tugrugs to purchase materials and parts needed for auto repair.
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.