Erdenebat S., 45, is a widower and the father of three children. He and his family live together in a ger (the Mongolian nomadic tent). His oldest two children, aged 20 and 18, are university students. His youngest daughter, Urangoo, attends a local secondary school.
Erdenebat operates an auto spare parts trading business in his town. He started his business in 2009 with a working capital of 800,000 MNT, and within only one year, he has managed to increase his working capital to 1,100,000 MNT. He has been planning to expand his current business and to start a block manufacturing business as well.
The whole family supports his business. Since he started this business, he has been providing money for his family expenses and paying the education fees for his children. Erdenebat is an open person who has very good communication skills. He says, “The most important thing to me is to provide a good education for my children." He is requesting a 2,000,000 MNT loan to purchase more spare parts 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.