Nyamdavaa B., 50, lives with his wife and two sons in Arhangai province, Mongolia. He and his family live together in a ger (the Mongolian nomadic tent). His oldest son, Anhbayr, attends a vocational training center. His youngest son, Erdenebat, attends a local secondary school.
Nyamdavaa operates a wooden furniture manufacturing business. He has been operating his business since 2004, and has steadily expanded his business over the past six years. Nyamdavaa's initial working capital was only 40,000 Mongolian Tugrug (MNT), but after years of successful operation his working capital stands at 800,000 MNT today. With his business profit, Nyamdavaa has used 1,000,000 to purchase a house and plot of land with a yard for his family. Nyamdavaa is an skillful manufacturer and very hardworking person. He says, “I always try to make high quality products for my customers. ” He is requesting a 1,100,000 MNT loan to purchase more timber 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.