Uranchimeg is 33 years old and lives with her child and husband in a ger or Mongolian yurt in Ulaanbaatar, the capital of Mongolia. Her son is a high school student and her husband works as a driver. Last year, she began renting space at a local store and started selling shoes and clothes. Before that, she earned a living as a hairdresser, but her new business is more profitable. In the future, she plans to buy and move into her own commercial space. She believes that she can do this because she is hardworking and diligent. Uranchimeg is applying for a loan for 1,500,000 MNT to buy more items from China, including shoes, to sell to her customers.
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.