Chimgee Z. is a single mother of two children and she currently lives with her youngest child in Ulaanbaatar, the capital city of Mongolia. Her oldest son works in South Korea as a contract worker, and he sends money to his mother. His mother recently purchased a new one-bedroom apartment with her son's money. Besides the remittance money she receives, she sells cheap shoes at Sundae Center, a 24-hour shopping mall in the busiest district of Ulaanbaatar. She rents a small stall and sells various men's and women's shoes imported from China. She says that because her stall is located in the busiest section, the business is doing pretty well. She further says that she would like to expand her business by adding more quality shoes in her stall. Her dream is to be financially able to send her youngest daughter to get the best education abroad. She requests a loan to purchase more winter shoes 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.
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.