Tuvshintugs N. is 44 year old and lives with his wife and two sons in Arkhangai province in central Mongolia. His oldest son is a 19 year old university student, and his youngest is an 18 year old high school student. The family is very happy in Arkhangai and has lived in their house for 10 years. Tuvshintugs operates both a clothing retail and taxi business in his town. He sells clothes through a rented stall at the local market and uses his own car for his taxi service. Tuvshintugs, in an effort to make a better living, started the clothing business in 1997 with capital of 100,000 tugrugs (~ 69 USD). With the profits from this business, he was able to buy a car and started the taxi service in 2003. Both businesses have brought him success and have greatly improved his family's quality of life. Tuvshintugs attributes his success to being a very open-minded businessman, and today, his business capital exceeds 600,000 tugrugs. For the future, Tuvshintugs says, “I dream of owning my own store”. He is requesting a 800,000 tugrug (~ 552 USD)loan for purchasing new car parts for his taxi 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.