Ayush B. is 46 years old and lives with her husband and two children in a small house in Khovd Province, Mongolia. Her son and daughter are both university students and her husband works as a security guard at a local school. B. operates a flour, rice and sugar trading business at a local market in her town. She started her business in 2002, with the capital of 300,000 tugrug (~210 USD) and has managed it by herself for the last seven years. She has worked hard and today enjoys a stable business operation. Her earnings have enabled her to remodel her house and pay all of her children's school tuition, and today her working capital exceeds 2,000,000 tugrugs (~1400 USD).
B. is a very open-minded and hardworking businesswoman and she has many plans for the future. She hopes to continue to increase her earnings and improve her family's quality of life. She says, "In Mongolia the swine flu is spreading very quickly and the Mongolian government is going to limit domestic transportation throughout the country. For this reason, I hope to purchase a large amount of products from Bayan-Ulgii, the closest province, before the government's decision." B. is requesting a 2,000,000 tugrug (~1400 USD) loan to purchase three tons of flour from Ulaanbaatar.
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.