Tungalagtuul is 41 years old and lives with her husband and two children in the Arkhangai province of Mongolia. She and her family live in a ger, a traditional Mongolian nomadic tent. Her two children, 13 and 7, both attend local schools while Tungalagtuul and her husband operate a clothes-making business in their town. She began her business in 2005 with working capital of 1,000,000 tugrugs (~$700 US) and after four years in operation, she has gained a lot of experience and many customers. Her working capital now exceeds 2,000,000 tugrugs (~$1400 US). She says, “I want to keep expanding and improving my business in the future.” She is requesting a 1,500,000 tugrug (~$1050 US) loan in order to purchase fabric and materials for her business.
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.