Sangidorj L. is 38 years old and lives with her husband and three sons in Uvurkhangai province in central Mongolia. She and her family live in a ger, a traditional Mongolian housing tent. All three of her sons attend a local secondary school, and her husband works as an attendant at a fuel station. L. manages a flour trade business in her town. She travels to Ulaanbaatar, the capital of Mongolia, twice a month to purchase flour which she transports back to sell. She started her business in 2007 and has built a stable operation over the last two years. She works hard every day to grow her business and today, her working capital exceeds 3,000,000 MNT (~2100 USD). L. continues to build on her business experience and hopes to expand in the near future. She says, "I hope to expand my business so that I can continue to provide for my children's education." She is requesting a 3,000,000 tugrug (~2100 USD) loan to purchase flour for her business.
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.