Bayasgalan C. is a 35-year-old single mother who lives with her father and her three children in Hovd province in Mongolia. She and her family live in a ger, a traditional Mongolian nomadic tent. Her oldest two children, aged 13 and 7, both attend the local secondary school while her youngest son is in kindergarten.
Her father is retired and he operates a taxi service using his own car that he recently purchased with a pension loan. Bayasgalan operates a small cafe at a rented space in the local market. She has been engaged in this business for the past six years and has built a stable operation.
She hopes to expand her business and says, "All I want is to establish a new cafe for my daughter. Construction of the cafe building is started and in the process of pouring concrete." She is requesting a 2,000,000 MNT loan to use for the construction of her new cafe.
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.