Zagar is 34 years old and lives with his wife and three children in a ger (a Mongolian yurt) in Uvurhangai Province, Mongolia. He started his taxi service business in 2007 with his own car. Now that he has saved some money, he wants to run a garment retailing business with his wife. He has already rented a counter in the biggest market in the province and he has also contacted the supplier. In order to run a business successfully, his money is not quite enough. He is a sharp and hardworking man who says "the taxi service business is not expandable. It is basically the same thing everyday so I want to increase my income by operating a clothing sales business." He is requesting a 2,000,000 MNT loan to buy clothes for his new business.
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.