C. is a 39 year old widow who lives with her three children in the Uvurkhangai province of Mongolia. She and her family live in a ger, a traditional Mongolian nomadic tent. Her oldest son attends university and her two younger children both attend a local secondary school.
With the help of her mother, C. operates a dairy retail business out of a rented stall at a local market. She began her business in 2001 and has seen steady growth in her income since then. She says, “I would like to educate my children and expand my business in the future.” C. is requesting a 2,000,000 tugrug (~1400 USD) loan in order to purchase a large amount of dairy products for her growing 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.