Bolormaa G. is a 42-year-old and lives with her husband and children in Gobi-Altai province of Mongolia. Her husband is a carpenter and her eldest son is a university student in the State University of Mongolia in Ulaanbaatar, the capital city of Mongolia. Bolormaa has a small retail business selling vegetables. She mostly sells locally-grown vegetables in the local food market, where she rents a small stall and sells produce that she purchases from local gardeners. She mostly purchases potatoes from Khovd, a neighbor province where many people grow vegetables. She started her vegetable retailing business in 1999 and since then, her business has expanded: her business capital has increased from 200,000 MNT to 2,000,000 MNT ($1 USD=1,450 MNT). She says that her business is the main source of income to pay her son's university tuition. She hopes to expand her business and secure tuition money for her son from business profits. She requests a loan to purchase more vegetables for her 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.