Shar T. is 49 years old and lives with his wife and two sons in Bayanhongor province in central Mongolia. He and his family live together in a ger, a traditional Mongolian nomadic housing tent. His wife works as a technician at the local weather forecasting center, his oldest son operates his own cellphone trading business, and his youngest is a college student. T. operates a mobile grocery and ger wooden parts trading business in his town.
He works hard to make his business successful, despite having a physical disability which makes operating a mobile business difficult at times. T. went into business in 2000. In 2003, he changed his business and started making felt handicrafts. However, he went back to selling groceries in 2005 after having little success. Since then he has steadily grown his grocery business and currently enjoys a stable operation.
T. is very hardworking and hopes his future success will enable him to continue to improve his family's quality of life. He hopes to soon rent a stall at a new trading center in his town. He hopes this will be a good location and will allow him to expand his customer base. He says, "Because of my disability I would like to have one selling location for my business." T. is requesting a 363,000 tugrug loan to purchase grocery products for his business and cellphone parts for his son's 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.
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.