Last updated May 29, 2012

Partner Description:

Transcapital was established in March 2001 as a privately-operated, non-bank financial institution (NBFI), meeting the regulatory criteria of the Bank of Mongolia and the Financial Commission of Mongolia.

Today, the institution has grown to be one of the leading microfinance NBFIs in the country with 12 branches serving mainly urban and semi-urban clients -- including a growing number of migrants in the capital city of Ulaanbaatar. As of May 2012, Transcapital offers 20 loan products and works with about 2,500 clients. Almost 68% of these clients are women, and about 60% live in ger districts -- settlements made up of houses and traditional Mongolian felt tents that lack basic infrastructure. 

Working with Kiva will enable Transcapital to make funding available to more borrowers. This is a core part of the organization's mission to be a comprehensive financial service provider and protect the wealth of customers, including those who are economically disadvantaged or who have typically lacked access to financial services. Transcapital will continue to innovate and maintain ethical practices and transparency to become a leading NBFI and satisfy the financial needs of all of its customers.

Kiva's flexible, zero-interest financing will allow Transcapital to invest its profits in social performance activities to alleviate poverty. Currently, the institution plans to open three new branches deep in the underserved ger districts around Ulaanbaatar. Also this year, it will further loosen its collateral requirements for Kiva borrowers to ensure that marginalized communities have access to the financial tools they need. 

Going forward, Transcapital will strive to give borrowers the highest level of customer service, and create new options for low-cost funding. At the same time, the institution will ensure that all savings accumulated by working with Kiva are used to benefit borrowers.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Dec 28, 2010 Oct 12, 2005
Total Loans $619,200 $585,001,050
Amount of raised Inactive loans $0 $522,900
Number of raised Inactive loans 0 488
Amount of Paying Back Loans $22,650 $118,514,675
Number of Paying Back Loans 11 125,144
Amount of Ended Loans $596,550 $465,963,475
Number of Ended Loans 399 592,680
Delinquency Rate 37.55% 3.46%
Amount in Arrears $2,884 $2,674,338
Outstanding Portfolio $7,680 $77,270,318
Number of loanDelinquent 2 10,530
Default Rate 0.06% 1.15%
Amount of Ended Loans Defaulted $369 $5,337,117
Amount of Ended Loans $596,550 $465,963,475
Number of Ended Loans Defaulted 1 16,805
Currency Exchange Loss Rate 1.31% 0.08%
Amount of Currency Exchange Loss $8,122 $480,684
Refund Rate 1.70% 0.77%
Amount of Refunded Loans $10,525 $4,494,250
Number of Refunded Loans 10 5,038

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 64.21% 74.17%
Average Loan Size $1,441 $418
Average Individual Loan Size $1,473 $656
Average Group Loan Size $3,079 $1,827
Average number of borrowers per group 3.4 8
Average GDP per capita (PPP) in local country $2,175 $3,432
Average Loan Size / GDP per capita (PPP) 66.25% 12.19%
Average Time to Fund a Loan 8.17 days 5.57 days
Average Dollars Raised Per Day Per Loan $176.47 $75.16
  Average Loan Term 12.43 months 10.3 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 242 292,205
  Journaling Rate 49.48% 42.36%
  Average Number of Comments Per Journal 0.04 0.08
  Average Number of Recommendations Per Journal 0.03 1.90

Borrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 34% PY 38.00% PY 33.64% PY
  Profitability (return on assets) N/A 5.8% -1.40%
  Average Loan Size (% of per capita income) 58.70% 156.00% 41.35%

Country Fast Facts

Field Partner Staff

Munkhbayar Bayarbold
Chingerel Chinzorig
Oyuntsetseg Narantsogt
Altanzul Zorigt
Khongorzul Zorigt