Oyungerel is 50 years old and lives with her husband in a ger—a Mongolian yurt—in Hovd Province, Mongolia. All her grown-up children live and work on their own. She manages a shoemaking business in her town. She started her business in 1993 after working at a private company for 14 years. Now she makes a variety of Mongolian traditional shoes, which she sells large amounts of during holidays. She is a polite woman who is planning to purchase a new sewing machine in order to improve her business. She says, "I want to improve my business, because it is the only source of income for us." She is requesting a loan of 800,000 Mongolian tögrögs (MNT) to purchase a sewing machine.
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.