Banzragch C. is 53 years old and lives with his wife and two children in Tosontsengel, a city of Zavhan province, western Mongolia. His wife operates a clothing sewing business and his elder son works in Ulaanbaatar, the capital city of Mongolia while the youngest son attends a local middle school. The family has been living in their current home for 22 years. Banzragch makes iron items in his own shop near the family home. He started this business in 1995 and has since made quality products for the people of his province. He has found out the advantage of his business is that there are very few people in his province operating an ironsmith business supplying local citizens with ironwork products. Banzragch also wants to expand his business by making more products and further improve his family’s financial situation and the quality of life. Banzragch is a very modest person. He is requesting a 3,000,000 MNT loan to buy more iron and welding products 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.