Sosor B. is 31 years old and lives with his wife in a house in Khovd province in western Mongolia. He operates a business making wooden products in his town with the help of his wife. B. designs and crafts all of the products and his wife paints and decorates them.
He started his business in 2005 after learning how to make wooden products from his relatives. For most of the year, during the spring and summer, B. produces and sells his products. However, due to a lack of a proper working space, he purchases other people's products to sell during the colder months. B. has found success in his trade and his earnings have enabled him to expand his home.
He is focused on the future and is always looking for ways to expand his business. This coming spring he hopes to start a new business and open a small grocery shop. He says, “I need to continue to grow and improve my businesses. ” He is requesting a 3,500,000 tugrug (~2,500 USD) loan to purchase wooden products to sell this winter.
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.