Nigmet is 45 years old and lives with his wife and two youngest children in the Bayan-Ulgii province of Mongolia. He and his family live together in a ger, a traditional Mongolian nomadic tent. His oldest son lives and works in Ulaanbaatar, the capital city of Mongolia, while the younger children attend a local university in Bayan-Ulgii. Nigmet operates a coal delivery business in his town. Coal is an important energy source here in Mongolia because not everyone has access to, or can afford electricity. He began this business in 2006 after managing another transport business for 7 years. Nigmet delivers coal to contracted businesses and individuals all over town. During his three years in operation, he has gained a lot of business experience and a strong customer base. He says, “All I want is to be able to afford my children’s education and to buy a larger delivery truck in the future”. Nigmet is requesting a 1,500,000 tugrug (~1050 USD) loan in order to be able to buy a larger, more reliable delivery truck for his 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.