Dorjgotov B. is 47 years old and lives with his wife and three children in Bayanhongor province in Mongolia. His family lives in a ger (a traditional Mongolian nomadic tent). His oldest daughter is a university student and the younger two children both attend a local school. His wife operates a bakery in town. She produces a variety of pastries and breads from home to supplement the family's income. She started her business in 1992 making only one kind of bread and after years of operation she has expanded her business by increasing her product line. For the future, Dorjgotov's wife plans to open her own workplace in a rented space in the centre of town.
Dorjgotov operates an iron crafts and welding service. He has been engaged in this business since 1990 and has gained a lot of experience as a craftsman over the years. Dorjgotov is a hardworking man and says, "Our dream is to establish a big factory that can provide a variety of bakeries to our local market." He is requesting a 2,000,000 tugrik loan in order to purchase flour for his wife's bakery business (60% of the loan) and steels/irons for his iron craft business (40% of the loan).
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.