Berdimurat S. is 38 years old and lives with his wife and four children in Bayan-Ulgiy province, Mongolia, in their own ger, a traditional nomadic housing tent. His three elder children attend a local middle school, and the youngest one stays at home. His wife helps him with his business. Berdimurat operates a machinery spare parts trading business and owns a small shop made of bricks nearby his home where he sells his products. He began his business in 2000 with a small wooden shop and after years of successful business operation, Berdimurat managed to enlarge the shop and expand his services. His spare parts trading business is quite seasonal, so he is thinking of running a business producing bricks in summertime. Therefore, he has rented a plot of land located not far from his town in order to start his brick manufacturing. Berdimurat hopes to expand his brick manufacturing within two years. He is requesting a 3,000,000 MNT loan to get started producing bricks.
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.