Bumtsend B. is 60 years old and lives with his wife and two daughters in the Songinohairhan district of Ulaanbaatar, Mongolia's capital city. He and his family live in a ger, a traditional Mongolian nomadic tent and fence. His two daughters are attending secondary school. Bumtsend operates a firewood and coal selling business with the help of his wife in the Tsaiz market, the biggest raw materials market in the city. He has been engaged in this business for the past three years and has gained much experience. He purchases one truckload of coal at 280,000 MNT and packages them into 450-500 bags to sell at 850 MNT per bag. He sells firewood in addition to coal. He usually operates his coal and firewood trading business during the winter months and manages a mare's milk trading business in the summer months. Bumtsend is a hardworking and honest man. For the future, he says, "I would like to buy a truck for my business." He is requesting a 1,000,000 MNT loan to purchase two truckloads of coal and two truckloads of wood at wholesale price for 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.