Munhzul H. is 44 years old and lives with his wife and three children in Hovd province in western Mongolia. He and his famliy live in a ger, a traditional Mongolian housing tent. He currently operates a food retail business in his town, traveling to purchase the products and supplies for the business. His wife, Mendsaihan, helps him with selling food. Munhzul and his family started their bakery and food trading business in 2004 and make a variety of breads and baked goods which they sell directly to their customers. After building a stable operation, Munhzul and his wife used their earnings to start selling food in addition to the bakery. The continued growth of both businesses recently enabled them to expand the business. They attribute their success to their ability to deliver quality products to the consumer. Munhzul hopes to continue to expand his family business in the future and is requesting a 1,500,000 MNT loan to purchase construction materials in order to enlarge their food shop.
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.