Munkhbat, age 40, lives with his family in a suburb of Ulaanbaatar, the capital city of Mongolia. His wife is a room clerk at a local hotel and both of his sons attend the public school. Munkhbat used to work as a retailer at an auto market called Da Khuree for several years. Since 2001, he has been running his own mechanic’s workshop in a garage.
He started his business with a working capital of 500,000 MNT (Mongolian Tugriks). His business has since expanded and now his working capital is 5,000,000 MNT. Besides repairing vehicles, he also buys used cars and renovates exteriors, repairs broken engines, and replaces spare parts. After such alterations, he sells the used cars at a higher price. Over the past few years, Munkhbat has managed to build a small new house in his own yard with the profits he has made through his business.
He is requesting a loan of 3,000,000 MNT to purchase and renovate used cars in order to sell them at higher prices. Munkhbat is working hard to support his children’s education, particularly as his oldest son is enrolling in university and Munkhbat needs to be able to afford the tuition expenses.
Transcapital is one of the leading non-bank financial institutions (NBFI) in Mongolia. Through 12 branches, it serves mainly urban and semi-urban microfinance clients, including a growing number of migrants in the capital city of Ulaanbaatar. Of its clients, almost 68% are women and 60% live in ger districts, settlements made up of houses and traditional Mongolian felt tents that lack basic infrastructure.