Adiya T. is 61 years old and lives with his wife and three children in Uvurkhangai province in central Mongolia. He and his family live in a ger, a traditional Mongolian felt housing tent. His oldest son is a buddhist lama, his only daughter is a university student, and his youngest son attends a local secondary school. T. operates a clothes trading business in his town. He sells a variety of clothing items out of a shipping container located near the local goods market.
T. started his clothing business in 1997 with the working capital of 100,000 tugrugs (~70 USD). At first, he rented a small stand at the market where he conducted his business. He has been able to use his earnings to buy the shipping container. Today, his business operates at a stable level and he has a good reputation amongst both his customers and the supplier. His working capital now exceeds 2,000,000 tugrugs (~1400 USD). For the future, T. hopes to continue to expand his business and to increase his earnings. He says, "My wish is to educate my children and to expand my business." He is requesting a 2,000,000 tugrug (~1400 USD) loan to purchase clothes to sell.
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.