Mr. Janchiv, 48 years old, lives with his wife and daughter in Darkhan, the second largest city in Mongolia. The family resides in their own house on fenced land. He has been running an automobile repair shop for seven consecutive years. In wintertime, the number of customers decreases drastically, so he produces and sells cookers to local people. The automobile repair shop he owns has been heated by a low pressure heater and the authority of Darkhan city requested he install a central heating system for energy efficiency. So, Mr. Janchiv is requesting a loan of 6,000,000 tugriks to install a central heating system in his automobile repair shop.
The advantage of the installment of a heating system is that it offers a more environmentally-friendly solution than a direct electric heating device. This stems from the fact that most electricity originates remotely using fossil fuels, with up to two-thirds of the energy in the fuel lost at the power station and in transmission losses. Typical efficiencies for central heating are: 85-97% for gas-fired heating; 80-89% for oil-fired, and 45-60% for coal-fired heating. Based on these facts, installment of a heating system in the automobile repair shop will enable Mr. Janchiv to spend less on energy consumption.
More information about this loan
This loan is part of Credit Mongol's green loan program, which helps clients to purchase products for improving their heating and ventilation systems, reducing pollution and health problems caused by burning coal in the winter.
About Credit Mongol
Credit Mongol is the largest non-banking financial institution (NBFI) in Mongolia. Its mission is to contribute to the prosperity of Mongolians by providing high-quality, affordable and varied financial services to micro-entrepreneurs and small-to-medium-sized businesses. It prioritizes serving remote, rural populations that have typically lacked access to credit and other financial services. Uniquely, it offers solar panel loans to nomadic herders, most of whom live without electricity.