Algaa is a widower who lives in the Arkhangai province of Mongolia. He lives alone in a ger, a traditional Mongolian nomadic tent, and operates a religious goods retail business in his town. He began his business in 2007 with working capital of 250,000 tugrugs (about $170) and with several years of hard work, he has managed to increase his working capital to exceed 1,200,000 tugrugs (about $840). With the success of his business, he has managed to purchase a car and establish himself in the business community. Algaa is requesting a 1,000,000 tugrug loan in order to purchase a large amount of religious goods for his business.
XacBank was founded in 2001, and listed its first loan on Kiva in January 2009. It is the largest micro-finance 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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