Oyuntsetseg is 41 years old and lives with her son in a ger (or traditional Mongolian yurt) in Uvurhangai province. His mother is retired and her son is a college student. She started her business in 2004 by renting a small space in a hair salon. She has done well, and has used her earnings to buy a house and pay her son's college tuition. Competition is increasing, and she needs to upgrade her equipment and do some repairs to her shop. She is committed to work hard, and describes her goals for her business this way: "There are a lot of nice shops now. I need to fix my place and renew my equipment or else I am going to lose my customers." She is applying for a loan for 2,500,000 MNT to buy new chairs and equipment.
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.