Tungalagtamir L. is 49 years old and lives with her husband and three children in Arhangai province, in the central part of Mongolia. She and her family live together in a ger, a traditional Mongolian nomadic tent. Her husband works as a welder and helps her out with her business. Her elder two daughters are students and her youngest son attends a local high school. Tungalagtamir is happy that she is able to afford her daughters' tuition fee with her business earnings.
Tungalagtamir operates a retail business selling dairy products in her town at the local market. She started her business in 1994 with working capital of 50,000 MNT. Her working capital now exceeds 2,000,000 MNT. She attributes her business success to her knowledge of local market demands. She is requesting a 2,900,000 MNT loan in order to purchase more dairy products to sell at a retail price.
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.