Tserendorj is a 39 year old man living with his wife and 4 year-old child in the Arkhangai province of Mongolia. He used to work as a guard at the local market Hasu. In 2003, he made the decision to start his own business making wooden furniture. At first, his working capital was 150 000 tugrug (~105 USD), but it soon reached 800 000 tugrug (~560 USD). Tserendorj has gained a lot of experience and knowledge as a business owner over the years and got his regular customers. As his business has grown steadily, thus enabled him to buy own house and also a small truck to transport raw material and deliver goods to his customers. He is requesting a 800 000 tugrug (~560 USD) loan to buy more tools and wood for his furniture making 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.