Vandanduger T. is 31 years old and lives with his wife and one son in Arhangai province, Mongolia, in a ger, a traditional Mongolian nomadic tent. His son attends a local kindergarten while his wife works as a teacher in the local school.
Vandanduger has been operating a taxi service since 2000 and started to operate a raw material trading business in 2004 in addition to his taxi service. In the beginning, his working capital was 400,000 MNT, and after years of successful operation he has gained many permanent customers as well as much experience in both businesses. He has managed to increase his working capital to a level exceeding 3,000,000 MNT today.
He purchases his raw materials from the countryside using his own car and resells at the local market for profits. His earnings have enabled him to make a complete re-construction of his home. Vandanduger is a very modest man. He is requesting a 2,600,000 MNT loan to buy more raw materials to resell for expansion of both of his businesses.
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.