Ulambayar H. is 36 years old and lives with his wife and two teenage boys in Hovd, one of Mongolia's western provinces. His boys are 9 and 10 years old and go to a local secondary school. Ulambayar runs a small retail business selling meat. He rents a stall at the local food market, where he sells mostly mutton and beef. He buys cattle and sheep from local herders, and slaughters and sells their meat in small pieces. He also owns a small car that he uses as a taxi in the evening. This car helps him earn some extra income for his family. He works very hard and is committed to trying different types of businesses to earn money for his family and increase its well-being. He has applied for this loan to buy cattle and sheep for his business.
XacBank was founded in 2001, and listed its first loan with 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.