Otgonbayar M., 27 years old, lives with his wife and son in a ger, a traditional Mongolian nomadic tent, in Hovd Province, located in western Mongolia. His wife works as a baker for a local bakery company, while Otgonbayar operates a transportation service business which he started in 2008. He hopes to continue to grow and improve his business so that he can provide for his family and create a permanent workplace with regular customers. A very hardworking and creative person, Otgonbayar is requesting a 1,300,000 MNT loan to purchase spare parts for his taxi.
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.