Jargalsaihan B. is 40 years old and lives with his wife and three children in the Bayanhoshuu of Songinohairhan district of Ulaanbaatar, the capital city of Mongolia. He and his family live together in a house surrounded by a fence. His oldest daughter attends secondary school and his wife stays at home to care for their children. Jargalsaihan supports his entire family by operating an iron crafting business in his town. He produces a variety of steel/metal items according to his customers’ specification. Before starting his iron craft business, Jargalsaihan operated a traditional Mongolian shoe-making business in his home starting in 2000. He started his metal business in 2005 and it has grown into a stable operation over the years. He has expanded his business by hiring two to three workers. He produces a variety of metal goods in his rented work place. After years of hard work, he has gained a wide customer base. He needs own car for delivery iron. Because Jargalsaihan rented by car for delivery iron materials, which is a using to make metal goods, but it is expensive. In the future, he plans to enlarge his house and its surrounding fence so he can build a work space within his compound. Jargalsaihan is requesting a 3,000,000 MNT loan in order to purchase a car 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.