Sodnom J. is 33 years old and lives with his wife and two sons in Uvurkhangai province in central Mongolia. He and his family live together in a traditional Mongolian housing tent called a "ger". His oldest son is 17 years old and attends a local secondary school and his youngest will soon start kindergarten. Sodnom operates a transportation service and flour and rice trading business in his town. He transports people and goods from his province to Ulaanbaatar, Mongolia's capital city. In Ulaanbaatar, he purchases rice and flour which he transports back to his province to sell. His wife assists in the business and sells the products when her husband is traveling. Sodnom started his business in 2008 and has made much progress in his first year of operation. He has many plans for the future and says, "With stable business operations, my wife and I are planning to expand our flour and rice trading business and hope to begin selling a wide variety of grocery products". Sodnom is requesting a 3,500,000 tugrug (~2,500 USD) loan to purchase flour and rice to sell in his 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.
To lend to more Mongolian borrowers, please click here:http://www.kiva.org/app.php?page=businesses&queryString=Mongolia&status=fundRaising&gender=All§ors=All®ions=All&sortBy=Expiring+Soon
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.