D. is 39 years old and lives with his wife and seven-year-old daughter in the Uvurkhangai province of Mongolia. He and his family live in a ger, a traditional Mongolian nomadic tent, and his daughter attends a local secondary school. With the help of his wife, D. operates a wooden product business in his town. He began his business in 2000 after borrowing his friend’s woodworking tools. In 2005, he received a loan from XacBank, one of the largest banks in Mongolia, in order to purchase his own woodworking tools. Because he has been in business for almost a decade, D. has increased his business experience and his customer base. He is requesting a 2,000,000 tugrug (~1400 USD) loan in order to purchase wood and other necessary materials for his woodworking 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.
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.