Jargal L., age 64, lives with her husband and son in her own house and enclosure in the Songino-Hairhan district of Ulaanbaatar. Her son works for a private company and her husband has retired on a pension. Jargal has operated a grocery sales business since 1992, renting a stall in “Tavan erdene”, a grocery market in her town. She has been paying 160,000 MNT a month to rent the stall. After many years of owning this business, she has gained a lot of experience as a businesswomen. Her income is around 130,000 MNT a day and 300,000-400,000 MNT a month. For the future, she plans to open a savings account for her son. Jargal is requesting a 2,250,000 MNT loan in order to buy 50 kg of dry grapes from the USA for her grocery sales 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.