Tsogtbayar D. is 26 years old and lives with his wife and two year-old son in Arhangai province in central Mongolia. He lives with his family in a ger, a traditional Mongolian nomadic tent home. His wife works as a hairdresser in the hair salon. Tsogtbayar manages a raw material trading business in his town. He started his business in 2006 with a capital of 350,000 MNT. After years of experience in his trade, he has established a stable operation and a good position in the business community. Today, his working capital exceeds 1,600,000 MNT. For the future he hopes to continue to grow his business and says, "I want to supply good quality materials in the local market". He is requesting a 1,500,000 MNT loan to purchase more raw materials in order to improve his 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.