Gantugs is a 34 year old divorced mother of two children who lives in a house in the Bayanhongor province of Mongolia. Her two children, 14 and 10, both attend a local secondary school while Gantugs runs a machinery part retail business out of a shipping container in the local market. She began her business in 2000 with working capital of 3,000,000 tugrugs, and since then she has grown her business operations and established herself in the business community. Her working capital now exceeds 10,000,000 tugrugs, and she credits part of her success to her accounting training. She says, “I want to have a warm, safe working environment as well as save up money for my children’s education.” Gantugs is requesting a 2,000,000 tugrugs loan in order to purchase machinery parts from Ulaanbaatar, the capital city of Mongolia.
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.