Tugalhuu B. is 35 years old and lives with his wife and two sons in Arhangai province, Mongolia. He and his family live in a traditional nomadic tent called a ger in a small yard that they rent. His oldest son, Davaasuren, attends a local primary school, and his youngest, Temuujin, will soon begin school.
Tugalhuu operates a bread-making business in his town with the help of his wife. They sell the bread that they produce to small grocery shops and service centers throughout their local area. He started his business in 2009 with working capital of 100,000 MNT and has grown his business successfully in a short time. In only a year, his working capital has increased to a level exceeding 300,000 MNT.
Tugalhuu's family and business are both very important to him. One day, he hopes to purchase a yard for his family to live in. He is requesting a 400,000 MNT loan to purchase flour in bulk to make bread to sell to his customers.
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.