Savaandorj A. is 46 years old and lives with his wife and three sons in the Arkhangai province of central Mongolia. He and his family live in a ger, a traditional Mongolian nomadic tent. All three of his sons - ages 19, 15 and 13 - attend a local secondary school. A. currently operates a business making wooden products. He designs and produces many different styles and sizes of furniture that he sells throughout his community.
A. started his business in 2002 with capital of 50,000 tugrugs (~35 USD) and has found success in his trade. Today, his business is well established in the local area, and his working capital exceeds 2,500,000 tugrugs (~1,750 USD). Regarding the future, A. says, "My main business goal is to continue to produce quality products for my customers." He is requesting a 2,500,000 tugrug (~1,750 USD) loan to purchase more wood to make furniture.
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.