Lhamsuren G. is 50 years old and lives with his wife and three children in Gobi-Altai province in southwestern Mongolia. He and his family live in a ger, a traditional Mongolian nomadic tent. His oldest daughter graduated from a pharmacy program in 2009 and now works for a popular Mongolian pharmacy chain. His youngest daughter is currently attending university and his youngest son goes to a local secondary school. G. operates a firewood-selling business at a local market in his town, with the help of his wife. He started his business in 2004 with working capital amounting to 300,000 tugrugs (about $210). The business is supported by the entire family and it has grown into a successful operation. Over the years, G. has used his earnings to expand his business and now sells coal in addition to firewood. Today, his working capital exceeds 3,000,000 tugrugs. For the future, G. says, "I would like to expand my business further by growing vegetables to sell." He is requesting a 1,000,000 tugrug loan to purchase more wood and coal 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.