Zagdhuu L. is 46 years old and lives with her husband and four children in Zavhan province, Mongolia. She and her family live in a traditional Mongolian nomadic housing tent called a "ger". Two of her sons currently attend university and her only daughter is a secondary school student.
L. and her husband operate a small grocery shop in their town, selling a variety of Mongolian and imported food products. L. started her business in 1999, at first selling only baked goods which she made at home. After having success with her baked goods she saved enough money to rent a small workroom which she now owns.
L. is planning to expand her business in the near future and hopes to make a wider variety of baked goods. She is focused on supporting her children and says, “I need to save for my children's education.” She is requesting a 4,000,000 tugrug loan to purchase tools and equipment 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.
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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.