D. is 39 years old and lives with her aunt and two sons in the Uvurkhangai province of Mongolia. She and her family live together in a ger, a traditional Mongolian nomadic tent. Both of her sons, ages 18 and 16, attend a local high school. Her aunt stays at home and Daariima supports the entire family by operating a clothes-making business.
She began her business in 2003 after working as a dressmaker for several years. At first, she only had one sewing machine and made clothes according to her customers’ specifications. Now she owns many different sewing machines and designs and sews the clothing according to her own tastes. Because of her beautiful designs and the quality craftsmanship of the clothes, Daariima has a large, loyal customer base. She says, “All I want is to grow my business in order to be able to pay my sons’ tuition so that they can have the best education possible.” D. is requesting a 4,200,000 tugrug loan in order to purchase a large amount of fabrics, materials, and tools for her business.
XacBank was founded in 2001, and listed its first loan on Kiva in January 2009. It is the largest micro-finance 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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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.