Murathan H. is 26 years old and lives with his wife and two daughters in a 'ger', a traditional nomadic housing tent in Bayan-Ulgiy province, in the western part of Mongolia. His two daughters, ages one and five, both stay at home.
Murathan and his wife began their food retailing business in 2005 at a small stall near their home with working capital of 150,000 MNT (about 113 USD). Over the years of successful operation the two have gained much experience and increased their assortment and provide a variety of goods for their customers. Now their working capital exceeds 2,500,000 MNT (about 1883 USD).
Murathan's wife has also makes many kinds of needlework products and sells them out of her small shop. Murathan is planning to expand his business, and hopes to one day own his own big shop. He says, "In order not to spend so much on the transportation of products, I am planning to purchase a small car for my business." He is requesting a 3,650,000 MNT loan to purchase clothing and consumer goods from Tashkent, a border city of China.
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.