Bayasgalan M. is a 32-year-old and lives with her husband and three children in the Bayanzurh district of Ulaanbaatar, the capital city of Mongolia. The family lives together in a 'ger', a traditional Mongolian nomadic tent in her sister's yard, in one of the 'ger' districts on the outskirts of the city. Her older two children both attend a primary school and Bayasgalan operates a clothing-making business.
She makes a variety of clothes and sells them in Narantuul, the largest and most important market in the city. She began her business in 2004 and has since gained significant experience. After several years of hard work and determination, her working capital now exceeds 1,500,000 MNT with cash balance of 450,000 MNT. Her hope is to keep growing her business so that she can afford to pay her children’s tuition fees.
Bayasgalan is requesting a 1,300,000 MNT loan to purchase two new, more efficient sewing machines at 500,000 MNT and more clothing fabric at 800,000 MNT for her growing 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.