Otgonbayar D. is 48 years old and lives with his wife in a ger- a traditional housing tent in Ulaanbaatar, the capital city of Mongolia. His daughter is a student in Darhan, one of the biggest cities in Mongolia, while his wife helps Otgonbayar with his business. To make a living, Otgonbayar sews lightweight leather coats and clothes that are suitable for the spring and fall weather here in Mongolia. He started his business in 2000 as a mobile business. Today, he does all of the designing and selling of his clothes. His working capital recently reached 1,200,000 MNT including the equipment he uses for his business. He would like to expand his product line and broaden his customer base. He would also like to eventually own a workspace which is more comfortable than the one he has currently. Otgonbayar is a hard working person who is requesting a 800,000 MNT loan to purchase materials and a sewing machine which can be used to help make high quality leather products.
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.