Munhbat is 35 years old and lives with his daughter and wife in a house in Songinohairhan district of Ulaanbaatar city, Mongolia. His daughter is a high school student and his wife helps him to manage the family business. He started his business at Hangai wood trade market in 1990 and now is continuously managing the business. He buys wood that fills one truck at 600,000 MNT from wholesale market and retails smaller quantities of wood at 5,000 MNT, 15,000 MNT and 20,000 MNT. He pays monthly rent for a commercial space of 45,000 MNT. His daily sales income is 100,000 MNT and his monthly profit is between 700,000 MNT to 800,000 MNT.
He is planning to expand his business. He is very experienced at his field. He is a diligent and responsible man who says, "I want to fix my house with the profits I will earn from my business." He is requesting a 2,000,000 MNT loan to purchase 2 truck loads of wood.
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.