A. Merei is 39 years old and lives with her husband and three children in Khovd province in western Mongolia. She and her family live in a traditional Mongolian nomadic housing tent called a "ger". Her three children, two daughters and one son, all attend a local secondary school. Merei operates a vegetable trading business at a local market in her town. She started her business in 1995 and has built a stable operation over the years. She attributes her success to her hardworking nature and good personality. Merei hopes to continue her success and expand her business in the future. She is requesting a 1,500,000 tugrug loan to purchase vegetables to sell in her 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.