Dorjpalam B. is 44 years old and lives with his wife and three teenage children in Arhangai Province, one of Mongolia's central provinces. His oldest son is 19 years old and goes to a college in Ulaanbaatar, the capital city of Mongolia. The younger two daughters are 11 and 15 years old and go to local secondary schools. Dorjpalam started his small retail business with the capital of 30,000 Mongolian tugrugs (US$1 equals about 1,450 MNT) in 2006. He started his business by selling various dairy products including cheese, curds, and milk cream. Today, he rents a stall at the local black market and sells a greater variety of dairy products with an increased business capital of 3,000,000 MNT. Because he sells good quality products, he already has many loyal, regular local customers. He says that in his business, he has always prioritized customer satisfaction, which always follows good quality products and welcoming service. He has requested a loan to purchase more dairy products for his 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.