Togtohbayar J. lives with his wife and three children in Arhangai province, one of Mongolia's central provinces. The youngest son is 20 years old and is a third year student at the Mongolian University of Science and Technology in Ulaanbaatar, the capital city of Mongolia. Togtohbayar has a small business in livestock raising and selling. He purchases livestock including sheep, cattle and goat, in the springtime when meat price plummets. He feeds the animals that he bought in the spring until the fall when meat price peaks at its seasonal high point in the year. He mostly slaughters the animals in the fall and sells the meat at the local market. He and his wife have been in the livestock business since 1995. Since the start, he and his wife have done well; the business capital has increased from 500,000 MNT to 5,000,000 MNT ($1 USD = 1,450 MNT). He requests a loan to purchase more livestock for his business.
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.