Isa A. is 48 years old and lives with his wife and four children and daughter-in-law in the Bayan-Ulgiy province of western Mongolia. He and his family live together in a ger, a traditional Mongolian nomadic home tent. Two of his children, aged 19 and 23, are university students while the other children stay at home. Isa operates a retail clothing business from a rented stall at the local market. He began his business in 2004 selling small accessories. Since then, he has been able to start a retail clothing stall. In addition, his sister has helped to sell his products in the Russian market. He usually imports his clothing items from China and keeps an inventory of between 4,000,000 and 5,000,000 MNT. After many years he has built a successful operation and his monthly sales have reached a level of 1,500,000 to 2,000,000 MNT, with 25-35% considered net profit. For the future, he wants to be able to pay for his children to go to university and get a good education. Isa is requesting a 3,000,000 MNT loan to import more clothing for his retail stall.
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.