Tumur B. is 42 years old and lives with his wife and two children in Arhangai province in central Mongolia. His oldest daughter, Nandintsetseg, attends a local secondary school and his 2-year-old son, Baasansuren, has yet to start kindergarten.
B. operates a household goods trading business at the local market in his town. He sells a variety of household and consumer goods out of a shipping container with the help of his wife.
B. started his business in 2008 with capital of 100,000 tugrugs (~70 USD) after operating a business selling raw materials for several years. He has found success with his new business and has stable earnings. His profits have enabled him to provide financial stability for his family and to purchase a new car. Today, his working capital exceeds 1,600,000 tugrugs (~1100 USD).
For the future, B. says, "I want to expand my business and hope to one day own my own shop." He is requesting a 2,000,000 tugrug loan to purchase new products to sell.
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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