Hovdohan H. is 45 years old and lives with his wife and three children in Bayan-Ulgiy province, western Mongolia. He and his family live in a ger, a traditional Mongolian nomadic tent. Two of his elder children, ages 16 and 13, attend a local secondary school. The youngest daughter goes to a local kindergarten while his wife manages a clothing retailing business in their town.
Hovdohan has been operating a wooden products business since 1999, specializing in making dombor, a traditional Khazah musical instrument, in a small wood shop. He designs and produces the styles and sizes of the musical instrument that he sells throughout his community and has found success in his trade.
His wife is in charge of the clothing business, which has working capital of 3,500,000 Mongolian Tugriks and makes supplement and inventory once a month. With the business profit, the family purchased a small car.
For the future, Hovdohan says, "My main business goal is to continue to produce quality products and enlarge it by completing a newly built workplace for my customers." He is a very hardworking and modest person and is requesting a 2,000,000 MNT loan to purchase more supplements in Urumchi, a border city of China.
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.