Jantsandorj B. is a 45-year-old man who lives with his mother in the Uvurkhangai Province of Central Mongolia. He and his mother live together in a "ger," a yurt or traditional Mongolian nomadic tent.
B. operates a grocery and retail dairy business. He started his business in 2000 with 50,000 tugrugs of working capital. Since then, he has bought his own shipping container from which he operates his business and his working capital has grown to exceed 1,000,000 tugrugs. He would like to expand his business and be able to save money so that he can improve both his quality of life and his mother’s.
B. is requesting a 1,000,000 tugrug (approx. $705 USD) loan to purchase a variety of dairy products for the upcoming winter months.
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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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.