Purevdavaa J. is 23 years old and lives with his father and sisters in his own apartment in Ulaanbaatar, the capital city of Mongolia. His family also own a small plot of land on which they plant vegetables.
Purevdavaa and his family built an apartment building for fifteen families which they rent to other families. The apartment building was completed four years ago and now needs general repairs, maintenance and redecorating. The family wishes to provide comfortable apartments to their renters at a low cost.
Purevdavaa is a clever, business-minded person. He says, “I am thinking of getting married and having children in the future.” He is requesting a 4,000,000 MNT loan to repair apartments which he rents.
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.