Hatanbaatar U. is 34 years old and lives with his wife and two children in Arhangai province, in central Mongolia. He and his family live together in a ger, a traditional Mongolian nomadic tent. His two sons attend a local middle school. Hatanbaatar and his wife operate a clothing retail business in their town. He began his business in 2003. At that time he operated his business in a rented stall at the local market. He has since expanded his business and currently his working capital is approximately 2,680,000 MNT. He plans on opening his own store one day. He says, “My only wish is to be able to afford my children’s education and to help them lead good lives.” Hatanbaatar is requesting a 2,500,000 MNT loan in order to import more goods from Ereen, a border city of China, to attract new customers.
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.