Luvsandash B. is 53 years old and lives with his wife in Tuv province in central Mongolia. He and his wife live in a ger, a traditional Mongolian nomadic housing tent.
B. operates a felt-making business in his town with the help of his wife. He has worked as a herder for most of his life and started producing felt in 2007 as a way to increase his income. When he started, he used tools and equipment that he rented from a friend to produce felt. However, his recent success and earnings have enabled him to purchase his own tools and equipment. Today, he produces on average 6-8 pieces of felt per day.
B. has found much success producing felt and has many customers that demand his high quality product. For the future, he dreams of one day opening a felt-production factory. He is requesting a 2,000,000 tugrug loan to purchase new tools and wool to make felt.
XacBank was founded in 2001, and listed its first loan on Kiva in January 2009. It is the largest microfinance organization in Mongolia, but also has mainstream commercial operations. XacBank has the vision, scale and innovation to develop and implement new solutions to poverty. It is currently utilizing Kiva’s 0% lending interest rate to return 9% of interest paid from borrowers to them in the form of a savings account at the end of their loans. This not only allows borrowers to gain financially, but also encourages them to save.
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