Tumenjargal N. is 31 years old and lives with his wife and two children in a house in Uvs province in western Mongolia. He and his family have been living in their home for 3 years after moving from Ulaanbaatar, the capital city of Mongolia. His oldest son attends a local elementary school while his youngest daughter goes to a kindergarten.
Tumenjargal currently operates a bakery production business in a rented workshop with the help of his wife. Tumenjargal is a responsible for all works related with sales and distribution while his wife works as the lead pastry-cook in their bakery shop. They started this business in 2008 by establishing their own Bayanbulag bakery shop and have quickly found success with their business.
Today, Tumenjargal's bakery shop has 5 workers and produces almost 20 different types of breads and baked pastry. Under the "LUNCH" program, implemented by Mongolian Government, he has made contracts with local schools, kindergartens and organizations and permanently supplies his products to 56 organizations. He pays 80,000 MNT (60 USD) in rent every month. He is a hard working, open minded man who is focused on the future growth of his business. He says “I want to expand my business and to have my own workplace in the future”. He is requesting a 2,000,000 MNT (1508 USD) loan to purchase a large amount of raw materials such as floor, sugar etc., at wholesale price for his bakery 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.