Marusya T. is a widow who lives with her youngest son, who is 13 years old, in Arhangai province in central Mongolia. She runs a small retail business selling dairy products, largely unprocessed milk, cheese, curds and other items. She has run her business since 1995, buying unprocessed milk and milk products from local herders and selling them for a profit in the local market. Since starting in 1995, her business capital has increased from 50,000 MNT to 3,000,000 MNT ($1 USD = 1,450 MNT). With this profit, she was able to finance her sons' weddings. In the future, she would like to repair her apartment. She is applying for this loan to buy more milk and milk products to sell to her customers.
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.