B. is 27 years old and lives with his wife and four-year-old son in Ulaanbaatar, the capital city of Mongolia. He and his family live in a ger, a traditional Mongolian tent, in one of the ger districts on the outskirts of the city. His wife is a salesperson at Narantuul market, one of the largest and most popular markets in Mongolia. B. operates a grocery business out of a rented stall at another local market. He began his business in 2005, and with the earnings, he has managed to buy a family car and a plot of land where he will build a house in the future.
He would like to own his own grocery store in the future so that he can ensure his family’s financial security. B. is requesting a 2,500,000 tugrug (~1700 USD) loan in order to purchase a wider array of grocery products in order to begin expanding his 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.
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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.