Dorjsuren O. is 21 years old and lives with his wife and one-year-old daughter in a house in the Tosontsengel Province of Central Mongolia. His wife works as a bank teller.
O. operates a raw-material retail business in his town. He started his business in 2006 with the help of his older brother. After lots of hard work and determination, O. operates his business independently. He purchases skins and wool from herders and sells them for a profit in the Central Market. One day, O. hopes to have his own store where his customers and suppliers can come to him. He is requesting a 2,000,000 tugrug (approx. $1381 USD) loan to purchase livestock skins that he will sell in Ulaanbaatar, the capital city, and to buy a car for his family.
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.