Munkhbat is 23 years old and lives with his wife and 3-year-old son in the Khovd province of western Mongolia. He and his family live in a ger, a traditional Mongolian nomadic tent. His wife is a university student, his son goes to a local kindergarten, and Munkhbat operates a cell phone repair business. He began his business in 2003 in Ulaanbaatar, the capital city of Mongolia. When he and his wife moved to Khovd in 2006, he brought his business with him. In the past six years, he has become very experienced in his business field and has managed to save enough of his business profits to purchase a car for his family. Munkhbat says, “My business is growing quite well, but in the future, I would like to sell phones as well as repair them.” He is requesting a 1,000,000 tugrug loan in order to purchase cell phone parts for his business.
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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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.