Byambajargal Y. is a 33-year-old woman who lives with her husband and son in Ulaanbaatar, the capital city of Mongolia. In 2002, her family sold all of their livestock and moved from the countryside to the capital in hopes of improving their lives.
As soon as Byambajargal settled in, she started her own small business selling flour at the local food market. She buys flour from wholesalers and resells it at retail to local residents. As her business grew, she increased her inventory to include rice and sugar as well. The family has a small second-hand, Korean-made vehicle with which Byambajargal's husband, Damdinsuren, transports her flour, rice and sugar from the wholesale market. To increase the household’s income, Damdinsuren also runs a taxi service in town.
Byambajargal is requesting a loan to purchase more flour to increase her inventory. She is a humble, shy and hard-working person. She says, "I have a dream to have my own grocery store one day to ensure my only son's future life."
XacBank was founded in 2001 and listed its first loan on Kiva in January 2009. It was the first microfinance organization to be established in Mongolia, but it has now expanded to include 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.