S. is a 54-year-old widowed mother of a grown daughter who lives in the Khovd province of western Mongolia. She lives by herself in a ger, a traditional Mongolian nomadic tent, and operates a grocery business in her town. She began her business in 1997 with the help of her daughter, but since then her daughter has moved away with her own family, S. operates the business on her own now. She attributes her business’ success to the accounting skills she learned while at university and hopes to keep growing her business in the future. She says, “I get a pension, but I conduct my business in order to save money for my children and grandchildren.” S. is requesting a 1,000,000 tugrug loan to purchase more groceries for her shop.
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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