Batmunh N. is 31 years old and lives with his wife and ten year old son in a ger, a traditional Mongolian nomadic housing tent, in the Huvsgul province of Mongolia. His son attends a local secondary school. Batmunh operates a raw material retail business in his town with the help of his wife. He has been engaged in this business since 1996 and has built his business to a consistent level. After many years of successful operation, he has gained much experience as a businessman. Batmunh is a very modest and hardworking person. Today, he stores his raw materials in a small wooden pavilion. He plans to enlarge his storage capacity for raw materials. He is requesting a 1,500,000 MNT loan to purchase a large amount of raw materials in order to grow his working capital.
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.