Oyunchimeg D. is a widow with a 13-year-old daughter. Her husband passed away several years ago. Now she lives and shares a small plot of land with her late husband's father and two brothers-in-law, in the Chingeltei district of Ulaanbaatar (the capital city of Mongolia). In 2007, with her brother, she created a small bakery. They launched their business in a small space rented from a local service center. They have two employees. They have a yearly examination from the District Office for Standards and Safety Control and they have successfully passed the examinations thus far. They started the business by purchasing some necessary equipment with their own capital of 500,000 tugrig (Mongolian currency; $1=1,600 tugrig). Today, their capital has increased to 1,200,000 tugrig. She requests a loan to buy additional equipment and necessary ingredients. She says, "So far, I employ only two locals. In the future, as business expands, I hope to hire more local employees who are going through similar tough times."
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.