Kunggeibai T. is 40 years old and lives with his wife and his 7-year-old daughter in Bayan-Olgii province, one of Mongolia's western provinces. His daughter is a 2nd grader in a local high school. Kunggeibai has a small shop that offers welding service for locals. He has been in the welding business since 2005 and his business has been the main source of his family income since then. With his business profits, he has been able to finance building a small house in a small plot of land that his family owns. As there is no company that offers various welding related services in his town, he is usually busy with local customers’ orders. His short-term goal is to finish building his house with his business profits. He further says that he would like to open a savings account for his daughter.
He requests a loan to purchase raw materials for his welding 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.