S. Riza is 46 years old and lives with her husband and son in Bayan-Ulgii province in western Mongolia. She and her family live in a ger, which is a traditional Mongolian housing tent. Her son is 15 years old and attends a local secondary school.
Riza operates a clothing trading business at the local market in her town with the help of her husband. She imports a variety of clothing from China and transports them to her province to sell. Riza started her business in 2002 and has gained much experience in her trade over the years.
Today, her business is growing faster than ever and is enabling her to improve her quality of life. She hopes to take advantage of this success and expand her business in the near future. She says, "All I want is to be able to save enough money to support my son." Riza is requesting a 3,400,000 tugrug (~2400 USD) loan to purchase clothing from China.
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.