To earn a living, Galbaatar, with his wife's help, operates a firewood and coal-trading business in his town. They use their own truck to transport the coal and firewood, and they rent a small stall from which they sell their products. Galbaatar started his business in 2004 with a loan of 500,000 MNT (~$350) from Xacbank, Kiva's Mongolian MFI partner. Over the years, his business has been quite successful, and he has proven himself to be a trustworthy borrower. Galbaatar is focused on the future; in particular, he hopes to generate additional income so that he can pay for his children's tuition. He is now requesting a loan in the amount of 4,000,000 MNT (~$2,750) to purchase another truck to use for his business.
About XacBank: XacBank was founded in 2001, and listed its first Kiva loan in January 2009. It is the largest micro-finance 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 in the form of a savings account upon the maturity of their loans. By doing so, XacBank not only allows borrowers to gain financially, but also encourages them to save. To get regular updates from XacBank, please join our lending team at http://www.kiva.org/team/xacbank_mongolia. And to lend to more Mongolian borrowers, please click here:http://www.kiva.org/app.phppage=businesses&queryString=Mongolia&status=fundRaising&gender=All§ors=All®ions=All&sortBy=Expiring+Soon.
About XacBankThis 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.
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Success!! The loan was 100% repaid