Munhbat G. lives with his wife and two daughters in Hovd province, western Mongolia. His wife is a construction dealer in a company and his two daughters both attend a university.
Munhbat operates a firewood and charcoal selling business at a local market in his town. He has many years of firewood and charcoal trading business experience. Because he started his business in 2006. During the summer season, his business sales are low so he helps his wife with her work. If he receive an order for charcoal, he sells it.
Now Munhbat received an order for charcoal from Shim Us Co. Ltd. and therefore he needs to have enough funds to supply his orders. He is requesting a 1,500,000 MNT loan to purchase more coal to sell.
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.