Tsogtbayar P. is 37 years old and lives with his wife and three sons in Tuv province in central Mongolia. He lives together with his family in a 'ger', a traditional Mongolian nomadic housing tent. His two elder sons, ages 14 and 12, both attend local secondary school while his youngest son, age 4, is in kindergarten. His wife works as a private businesswoman, and Tsogtbayar manages a traditional Mongolian shoe-making business in his town with help of his wife. He makes a variety of Mongolian shoes that Mongolians have worn since ancient times.
Tsogtbayar started his business in 2002 and has built up a stable and successful operation. His earnings have enabled him not only to provide for his family but also to buy his own house and fence. For the future, he hopes to have his own shoe production factory. He is requesting a 1,000,000 MNT loan to purchase, at wholesale prices, more fabrics and materials used in making his traditional shoes.
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.