Lhagvasuren G. lives with his wife and three teenage children in Arhanghay province, one of Mongolia's central provinces. His three children study in local high schools. With his wife, he runs a small family business in wood processing and transportation. In 1995, he initially started his business by making wooden furniture for local clients. However, as he realized that there was a better money to be made in wood processing and transportation, he switched his business focus in 2007. He transports trees from local forests and processes them for carpenter's use. Business is going well, and he was able to repair and modernize his truck with his profits. He aims to supply all the processed wood for the local carpenters. He requests a loan to purchase trees and new tires for his truck. He hopes to be able to afford university education for his children. In the picture: Lhagvasuren's wife Altantsetseg in their business field.
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.