Bayasgalantogoldor B. lives with his mother in Arhanghay province in one of the central provinces of Mongolia. His mother is 70 years old and retired. He runs a small carpentry business in his province. At the request of his clients, he makes wooden furniture, such as tables, chairs and beds. Although he is deaf, he is a talented carpenter. He has lived with his mother for over 20 years and receives a small state benefit provided to disabled citizens. Since the benefit money is not adequate for their needs, he started his small carpentry business. In the future, he hopes to have a stable carpentry business and be able to fully support his mother and himself with his business. He is requesting a loan to purchase wood and to replace his old table saw so he can cut wood more efficiently.
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.