Badamgarav H. is 47 and lives with her husband and her two children in Tuv province, one of Mongolia's central provinces. Her oldest daughter is 24 and a university student in Ulaanbaatar, the capital city of Mongolia, and her youngest son is 6 and goes to a local secondary school.
Badamgarav rents a small stall in the Altan-Eh shopping center, one of the town's large shopping centers. She has been selling various food products at her rental stall since 2008. Her retail business has grown fast and her business capital has expanded from 1,000,000 MNT to 4,300,000 MNT ($1 = 1,450 MNT) in a year. She would like to expand her growing business and purchase necessary equipment. She says that she needs to purchase a fridge with a glass cover for selling ice cream and other frozen products.
She requests a loan to purchase a fridge and increase her working capital for her 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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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.