Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Partner Description:

In 2001, XacBank (pronounced ‘hahs-bank’) was created from a merger between two of the largest non-bank financial institutions in Mongolia: X.A.C. (an acronym for “Golden Fund for Development) and Goviin Ekhlel (Mongolian for “Gobi Start”).

Both organizations have strong roots, with X.A.C. founded as part of the UNDP’s MicroStart Mongolia project, and Goviin Ekhel established by Mercy Corps as part of USAID’s Gobi Initiatives project.

Today, XacBank serves about 21,000 microfinance clients through 98 branches in all 21 of Mongolia’s provinces -- making it the country’s largest microfinance institution. And the organization’s successful transition from development project to socially-driven commercial bank has made it a model in microfinance circles.

The bank’s dynamic approach has allowed it to maintain profitability and thrive in Mongolia’s increasingly competitive financial services market.

Eco-banking and green loans

According to a recent study by the World Health Organization, Mongolia is the most polluted country on earth, registering particulates at 14 times the WHO’s standard threat level. Accordingly, Kiva and XacBank have joined forces to offer green loans that finance environmentally-friendly businesses and activities, including organic farming, solar panel purchases, and energy-efficient home renovations.

Some of these green loans are administered by XacBank’s new Eco-banking Department. So far, this division has helped distribute over 60,000 energy-efficient stoves, over 17,000 insulated ger coverings for traditional felt homes, and over 4,000 insulated vestibules that lock in heat and expand the usable space inside these homes.

More than 107,000 families in the five districts surrounding the nation’s capital, Ulaanbaatar, have benefited from this initiative. Together, these environmentally-minded products are estimated to slash coal consumption by 157,000 tons and save households about $2.6 million in heating costs in 2012 alone.
XacBank’s work is also estimated to reduce emissions of particulate matter from household stoves by up to 25% in 2012, preventing 450,000 tons of greenhouse gases from being released into the atmosphere.

The bank is working with financial partners to receive accreditation for these greenhouse gas reductions. Under the Kyoto Protocol, this would allow the bank to generate income by selling carbon dioxide offsets on international markets. It plans to reinvest these profits in its clean energy program to expand access to environmentally-friendly products for low-income and marginalized communities.

Start-up loans

XacBank also offers loans targeting people who are just starting or trying to restart a business. Intensive training is provided alongside financing to help borrowers better understand their finances and how to operate small businesses. The bank also partners with ADRA,
Mercy Corps and other business incubators to give riskier borrowers access to more financial tools and resources.

Awards and honors

XacBank received these honors for its work in 2011:

The Microfinance Institution Strategy Competition Winner from the 9th annual Women’s World Banking Microfinance and Capital Markets Conference; Organization with Higher Social Responsibility from the Mongolia Management Association; Best Socially Responsible Enterprise from the Mongolian National Chamber of Commerce and Industry; 5 out of 7 Kiva Social Performance badges for Anti-Poverty Focus, Family and Community Empowerment, Entrepreneurial Support, Facilitation of Savings and Innovation.


XacBank’s vision is to become the bank preferred by clients in all customer segments by providing comprehensive, value-adding financial services, and applying top business processes while maintaining its leadership in the microfinance industry.

Core values

XacBank’s core values describe how it pursues this vision. They guide the behavior of all employees: Customer centric operations; creativity and fair remuneration; teamwork; respect and responsibility; corporate social responsibility.

XacBank and Kiva

When a non-delinquent borrower has paid back their Kiva loan, 9% of the interest they paid is returned to them and placed in a savings account to facilitate future savings.

Today, about 90% of the loans XacBank posts to Kiva are for green purposes, higher education or higher risk start-up businesses. The bank continues to extend its reach into lower-income areas and design financial tools to end poverty, combat pollution and expand access to education.

You can make a loan to a XacBank borrower here. Or join the XacBank lending team on Kiva to learn more and receive updates.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jan 8, 2009 Oct 12, 2005
Total Loans $8,598,150 $655,055,825
Amount of raised Inactive loans $0 $209,175
Number of raised Inactive loans 0 168
Amount of Paying Back Loans $716,600 $128,065,000
Number of Paying Back Loans 343 141,289
Amount of Ended Loans $7,881,550 $526,781,650
Number of Ended Loans 5,819 659,278
Delinquency Rate 0.00% 6.54%
Amount in Arrears $0 $5,464,103
Outstanding Portfolio $335,459 $83,519,267
Number of Loans Delinquent 0 23,956
Default Rate 0.14% 1.11%
Amount of Ended Loans Defaulted $11,086 $5,866,301
Amount of Ended Loans $7,881,550 $526,781,650
Number of Ended Loans Defaulted 16 17,636
Currency Exchange Loss Rate 1.61% 0.14%
Amount of Currency Exchange Loss $138,703 $895,125
Refund Rate 0.75% 0.71%
Amount of Refunded Loans $64,875 $4,640,300
Number of Refunded Loans 33 5,166

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 54.29% 74.20%
Average Loan Size $1,398 $417
Average Individual Loan Size $1,398 $655
Average Group Loan Size $0 $1,843
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $2,175 $3,395
Average Loan Size / GDP per capita (PPP) 64.29% 12.29%
Average Time to Fund a Loan 5.63 days 6.02 days
Average Dollars Raised Per Day Per Loan $248.39 $69.29
  Average Loan Term 18.89 months 10.61 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 4,774 324,716
  Journaling Rate 81.70% 41.84%
  Average Number of Comments Per Journal 0.08 0.07
  Average Number of Recommendations Per Journal 0.34 1.71

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 19% PY 38.00% PY 33.02% PY
  Profitability (return on assets) 1.6% 5.8% -0.68%
  Average Loan Size (% of per capita income) 196.80% 156.00% 36.66%

Country Fast Facts

Field Partner Staff

Tuvshinjargal Amarsaihan
Batzul Dolgorsuren

Kiva Fellow(s)

Robert Breen