P. is 48 years old and lives with her husband and two children in a house in the Arkhangai province of Mongolia. Both of her children attend the university and her husband helps her with the family business. P. operates a dairy retail business at the local market. She began the business in 2006 with working capital of 800,000 tugrugs. Since then, her business has become very successful and her working capital now exceeds 3,500,000 tugrugs. Because her business has become so successful, her family has been able to build their own home, purchase a car, and are in the process of building a home for her oldest child. P. is requesting a 4,000,000 tugrug loan in order to purchase more milk and dairy products in order to expand 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.