Erkan B. is 47 years old and lives with his family in a ger, a traditional Mongolian nomadic tent, in Bayan-Ulgiy province in western Mongolia. His oldest two children, aged 21 and 22, currently live and study at a foreign university in Kazakhstan, while his youngest son, 17, attends a local high school.
Erkan owns and operates his own shoe repair business. He began his business in 2000 in a rented workspace at the local market. He has built his business to a consistent level and attributes its success to his strong selling and communication skills. He pays a monthly rent of 30,000 MNT. His service charge is between 1,000 and 4,000 MNT and he earns 50 per cent as net profit.
In the future, Erkan hopes to grow his business and have his own workplace. Therefore, he is requesting a 500,000 MNT loan in order to buy more repair supplies and tools for his shoe repair center as well as to purchase three tons of coals (costing 180,000 MNT) to prepare for the winter.
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.