Tsetsegmaa S. is 53 years old and lives with her husband in Arhangai province, one of Mongolia's central provinces. Her husband drives a truck between their hometown and Ulaanbaatar, the capital city of Mongolia, where more than 30% of the Mongolian total population resides. Tsetsegmaa runs a small food store at the center of the town. She sells basic food products such as soft drinks and cookies. Her store is conveniently located right next to a secondary school, so most of her customers are students and their parents. Tsetsegmaa says that her daily income is pretty good.
She purchases her food products from wholesale markets in Ulaanbaatar and her husband usually transports these goods. Tsetsegmaa would like to expand her business by adding more varieties of food products that her young customers would like to purchase. She is requesting a loan so that she can offer a greater variety of products in her store.
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.