Badamtsetseg is 45 years old and lives with her three children in the Chingeltei district of Ulaanbaatar, the capital city of Mongolia. Her husband works in a foreign country and sends 150,000-250,000 tugrug (~100-200 USD) per month in order to help them with their living expenses. Her two daughters and son all attend a local secondary school while Badamtsetseg operates a grocery retail business near her home. She began her business in 2001 by operating a small booth. At that time, her working capital was 100,000-150,000 tugrug (~70-105 USD). Since then, she has been able to move from her small booth into a shop and now her working capital is between 300,000 and 500,000 tugrug (~210-350 USD). Her business is the main source of family income and she attributes her success to her good accounting and financial skills. She says, “I want my children to be better educated people who can contribute to their country’s development.” Badamtsetseg is requesting a 2,000,000 tugrug (~1400 USD) loan in order to purchase a large variety of grocery products for her shop.
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.