Munkhbayar is 28 years old and lives with his wife and six-year-old daughter in the Tuv province of Mongolia. He operates a local coal and wood transportation business. Coal and wood are two types of fuel used to heat gers and houses during the Mongolian winter. Munkhbayar opened this business earlier this year, after closing a retail business he had run for several years. His daily earnings are between 15,000 and 25,000 tugrugs (about $10-17). He has been so successful in his new line of work that he has been able to build a house for his family and a small shop near his home. He plans to sell food in this shop in order to further improve his family’s quality of life and stabilize his earnings when fuel sales decrease in the summer. Munkhbayar is requesting a 2,000,000 tugrug (about $1,400 USD) loan to buy coal and wood for his fuel business and food items for his new shop.
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.