Damdinsuren B. is 44 years old and lives with his wife and two children in a house in Ulaanbaatar, the capital city of Mongolia. His two children, 14 and 10 years old, both attend a local secondary school while his wife stays at home. B. sells women’s handbags in the largest Ulaanbaatar market, Narantuul. He began his business in 2000 after working as a geologist for a period of time. He purchases bags from China. B.’s working capital is 2,000,000 tugrugs and he has a healthy business profit of between 20% and 30% of that each month. He is requesting a 2,500,000 tugrug loan in order to purchase more handbags and increase his working capital.
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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