Otgonbayar T. is 38 years old and lives with his wife and son in the Uvurhangai province of Mongolia. He and his family live in a house and fence. His son, age 7, attends a local primary school, while Otgonbayar and his wife operate a clothing retail business out of two different sales locations. He began his business in 2006 with working capital of 1,500,000 MNT, which was spent to purchase a shipping container at the local market where he sells his products. After years of operation, he was able to expand his business by purchasing a stall at the local trade center, which is managed by his wife to sell a variety of clothing items. Today, he is responsible for managing his shipping container while his wife takes care of operations for another stall at the trade center. For the future, Otgonbayar plans to develop his business and increase his product line to include fur and leather clothes. Their earnings have enabled them to build a house in their own yard.
Otgonbayar is a modest and shy man and is requesting a 1,200,000 MNT loan in order to purchase and import more clothing products from Erlian, a border city of China, to sell at his two different places for the upcoming New Year holiday.
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.