Munhbat S. is 28 years old and lives with his wife and daughter in Uvs province of Mongolia. He and his wife live together in a ger, a traditional Mongolian nomadic tent. He operates a cafe in a rented space at the local market in his town. He opened his cafe in 2008 after moving from Ulaanbaatar, the capital city of Mongolia. After years of successful operation, his monthly net profit has increased to a level of 200,000 and 250,000 MNT. He hired one assistant worker who receives monthly salary of 100,000 MNT.For the future, he hopes to have hhis own restaurant. Munhbat is requesting a 500,000 MNT loan to purchase and preserve a large amount of beef for his cafe.
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.