O. is 42 years old and lives with her husband and three children in the Bayanhongor province of Mongolia. She and her family live together in a ger, a traditional Mongolian nomadic tent. Her son, 19, attends university; her oldest daughter, 17, attends a local secondary school; and her youngest daughter, 4, attends a local kindergarten. Her husband works as a miner during the summer months and helps O. with her business during the winter months.
O. operates an electronic appliances business in a shipping container in the local market. She began her business in 2006 with working capital of 6,000,000 tugrugs (about $4,200) and over the years, her business has grown. It now has a working capital of 10,000,000 tugrugs ( about $7,000). She also operates a second business at night making ger covers. With her business success, she has managed to buy a car for her family and hopes to continue paying her children’s tuition fees in order to give them a brighter future. O. is requesting a 3,500,000 tugrug loan in order to import electronic appliances and ger materials from China.
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.