Navihan is 50 years old and lives with his wife and two children, a daughter aged 23 and a son aged 18, in a house in the Bayan-Ulgii province of western Mongolia. His wife is unable to work because of a serious illness she contracted while working at a local mining company. Navihan, along with his daughter, operates a retail clothing business from a rented stall at the local market. Navihan’s daughter was unable to go to university when she graduated high school because of the high cost of tuition. Navihan began his business in 2004 so that he could provide a better life for his wife and children. Since then, the business profits have enabled him and his family to build a new home. Navihan not only wants to expand his clothing stall into a large clothing shop, but he also wants to be able to pay for both of his children to go to university so that they can get a good education. Navihan is requesting a 3,000,000 tugrug (~2100 USD) loan to both purchase more clothes so that he can offer more products to his customers, and to help pay for his children’s tuition fees.
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.