Jamsranjav N., 38 years old, lives with his wife and five children in Uvs province of Mongolia. His oldest four children, ages 10 to 17, attend a local secondary school while the youngest, age 2 years old, stays at home with Jamsranjav's wife. Jamsranjav operates a horse-cart business in his town. He carries supply loads and people from the local market to various destinations. For each trip, he earns between 3,000-5,000 tugriks (MNT). His business earnings are currently not sufficient to take care of his family; therefore, his wife is planning to operate a boot-making business. In order to start the new business, the couple needs to have start-up capital. They estimate they will earn 12,000 MNT per day as business profit. They are very modest and hardworking people. His wife says, "I am planning to make many boots and sell them. With our business earnings, we want to open savings accounts in a bank for our children." Jamsranjav is requesting a 200,000 MNT loan to purchase raw materials for 10 boots in order to begin the new business.
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.