D. Lhagvasuren is 37 years old and lives with her husband and son in Zavkhan province in western Mongolia. She and her family live in a traditional Mongolian nomadic tent called a "ger". Her 15-year-old son attends a local secondary school and her husband works as a driver.
Lhagvasuren operates a machine oil business in her town. She started her business in 2004 and has built a stable business over the years. This year, in addition to machine oil, Lhagvasuren started selling socks to supplement her income. For the future, she hopes to build on her past success and is focused on improving her business. She is requesting a 800,000 tugrug (550 USD) loan to purchase oil and socks for 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.
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.