Erdenechimeg is a 35 years old and lives with her son in Ulaanbaatar, the capital city of Mongolia. She and her son live together in a small house which they own. Presently, she operates a secondhand handbag trading business at Narantuul, the largest and most crowded market. She sells a range of Korean secondhand handbags at her counter. Erdenechimeg has been operating this business since 2002, and has steadily expanded her business. Over the years, she has worked very hard and has gained a great deal of business experience. Furthermore, Erdenechimeg has been planning to grow her business and to open her own store in the future and wants to increase her working capital. Erdenechimeg has many plans for the future and says, “ I would like to create my own store.” She is requesting a 1,600,000 tugrug loan to expand her production line and purchase a variety of secondhand handbags 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.