Angaa H. is 63 years old and lives with her two daughters in Uvs province in western Mongolia. She and her children live together in a ger, a traditional Mongolian nomadic tent. She operates a meat and milk trading business in her town. She also sells coal during the winter months to supplement her income. H. started her business in 2000 and has built a stable operation over the years. She works very hard at her business and has a built a very reliable customer base. Her earnings have allowed her to improve her family's quality of life and provide for her daughters' tuition fees.
H. hopes to continue to grow her business in the future and continue to provide for her family. She says, "My wish is to educate my children and help them to lead good lives." She is requesting a 700,000 tugrug loan to purchase a large amount of meat and milk in order to increase her business sales.
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.
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.