Tuvd J. lives with his wife and three children in Ulaanbaatar, the capital city of Mongolia. Two of his children go to a local high school and the youngest daughter goes to a local kindergarten. Tuvd's wife is a cook in a small local cafeteria.
Tuvd has a small retail business selling women’s and men's clothing. He imports clothing from Beijing, China, and sells it at the stall that he rents in the Narantuul market, the largest outdoor market in Ulaanbaatar. Since 1999, his business has been doing well and his business capital has increased from 1,000,000 MNT to 3,500,000 MNT (1,000,000 MNT is approximately $715).
With his previous profit, Tuvd was able to buy a small piece of land on which he built a modest house for his family. In the future, he would like to expand his business and set aside some money for his children's future college tuition. His and his wife's ultimate goal is to send all three children to university. He requests a loan to purchase more clothing from Beijing, China.
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.