Tuya T. is 37 years old and lives with her husband and three children in an apartment in Hovd province of Mongolia. Her children attend a local middle school while her husband commutes from their local town to Ulaanbaatar, the capital city of Mongolia. Tuya operates a women's clothing and lingerie retail business from a stall at a local clothing market. She sells a variety of different clothing items and and her wide product selection attracts many customers. Tuya started her women's lingerie business in 2008 selling only general woman's clothing items. After finding success and achieving stable business operations, she expanded her product line to include scarves and other garments. Tuya is a very open-minded and sociable woman and is well liked by her customers. With their business earnings, Tuya and her husband have started building a new house. For the future, she says, "I would like to expand my business and increase my sales". She is requesting a 2,000,000 MNT loan to complete their house building.
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.
About Housing Loans
Many poor families cannot afford housing that meets their needs. When you make a housing loan on Kiva, you give people access to flexible capital to obtain or improve their homes. Better housing means better health, sanitation, and even educational outcomes for children. A house can also be much more for entrepreneurs who run businesses out of their homes. In this way, housing and small business loans on Kiva share a common purpose: to alleviate poverty and enable families to enjoy more stable lives.