Odgerel U. is 25 years old and lives with his wife and 2-year-old son in Tuv province, one of Mongolia's central provinces. His wife looks after her 2-year-old son at home and helps in her husband's business whenever she can. She is now eight months pregnant and is expecting her second child soon. Odgerel has a small business with his mother-in-law. He rents a 1.5-meter-wide stall at the local black market and sells various women and men's clothes imported from China. His mother-in-law works as a saleswoman at the stall and handles all the sales of clothes while Odgerel travels to China to import the clothes. He has been doing this clothes retail business with his mother-in-law since 2005 and he says that his mother-in-law is a good business partner. Odgerel and his mother-in-law dream of having their own store where could sell their clothes in a more convenient way.
He requests a loan to purchase more clothes from China.
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.