Munhbat E. is 26 years old and lives with his wife and two children in Bayanhongor province, Mongolia. He and his family live together in a ger, a traditional Mongolian nomadic tent. His eldest child attends a local secondary school.
Munhbat's wife operates a grocery trading business while Munhbat drives a taxi to supplement the family income. His wife sells flour and rice from a shipping container at the local market. They started this business in 2008 by first renting the container and then purchasing it with their business revenues. Over the years they have worked hard to build a stable business operation and their working capital has reached up to 5,000,000 MNT. With their business profits, they have been able to buy a a new car, which is used as a taxi. In the future, they plan to increase their working capital and improve the car. Munhbat is a very open-minded and friendly man and is requesting a 2,000,000 MNT loan to purchase more flour and rice to sell.
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.