A loan of $1,625 helped to purchase more wool felt.

Gonchigsuren's story

Gonchigsuren E. attended a felt souvenirs training seminar with three friends in 2005, and they decided to begin their own business. Most of her products are sold to foreign tourists, but some are bought by local Mongolians. Since then, her business has grown steadily and her working capital has increased from 200,000 tugriks (~ $140 US) to 2,300,000 tugriks (~ $1,614 US). She credits her business success to her hard work and good customer service. She is requesting a 2,300,000 tugrik loan in order to purchase more wool felt and to increase her working capital to prepare for next year’s tourist season.

E. is 41 years old and lives with her 10-year-old daughter in the Arhangai province of central Mongolia. She and her daughter live together, and her daughter attends a local secondary school. Because of her business success, E. was able to purchase a house with a yard where she can raise her daughter in relative comfort.

XacBank was founded in 2001, and listed its first loan on Kiva in January 2009. It is the largest microfinance organization in Mongolia, but also has mainstream commercial operations. XacBank has the vision, scale and innovation to develop and implement new solutions to poverty. It is currently utilizing Kiva’s 0% lending interest rate to return 9% of interest paid from borrowers to them in the form of a savings account at the end of their loans. This not only allows borrowers to gain financially, but also encourages them to save.

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