Baatarbold N. is 45 years old and lives with his wife and four children in Baganuur district, one of the remote districts of Ulaanbaatar, Mongolia's capital city. His oldest son currently attends university, and his three teenaged children attend a local secondary school. His wife makes traditional Mongolian boots and sells them to supplement her family's income. He operates a small wooden products production business in his area. Baatarbold started his wood products business in 2001. He received a loan from Xacbank in 2008, and spent it to purchase a saw machine and started to produce home furniture. He has used the success of his business earnings to greatly improve his quality of life. His earnings have also enabled him to pay for his children's tuition fees and school supplies for his children. For the future, Baatarbold hopes to purchase new tools to help him to improve his product quality and to increase the variety of wood products. He is requesting an 800,000 MNT loan to buy a new machine and raw materials for his 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.