Oyunbaatar U. is 49 years old. He lives with his wife and two children in Hentiy province, Mongolia. He and his family live in a ger (a Mongolian nomadic tent). Oyunbaatar operates a shoe repair business. He shares his workplace, which is located near the largest local market, with a friend. He has been operating his business since 2000, and has built a loyal customer base over the past ten years. His daily revenue is 30,000 MNT, and his monthly revenue is 900,000 MNT. He charges 2,500 MNT to repair one pair of shoes.
Oyunbaatar's wife, Oyunbileg, is a nurse at a local hospital, and earns 220,000 MNT per month. Both of Oyunbaatar's children are university students. With his business profits, he has been able to purchase his own plot of land with a house and yard, and has been paying his two children's university fees. Oyunbaatar has a demand deposit in our bank, and deposits his daily revenue in it. It is therefore possible for us to monitor his revenue. He is requesting a 4,000,000 MNT loan to purchase necessary materials and equipment to manufacture shoes. In addition, he will use the loan to finish building a new house for his family.
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.