Mendbayar S. is 36 years old and lives with her husband and two daughters in Bayanhongor province, Mongolia. They live in a ger, a traditional Mongolian nomadic tent. Her two daughters, aged 8 and 12, both attend a local secondary school.
Mendbayar operates a food trading business with the help of her husband. They began their grocery trading business in 2003 selling a variety of foodstuffs from a rented stall. Since 2007, they have been traveling through the countryside to sell both grocery products and consumer goods for profit. Over the years of successful operation, Mendbayar has managed to increase her working capital to a level exceeding 1,000,000 MNT. She has been saving her earnings to reach 3,000,000 MNT.
Mendbayar plans to buy a new truck for her husband to operate a transportation business to supplement the family's income. Moreover, she would like to keep growing her business as a stable operation and have her own workplace. Mendbayar is requesting a 1,000,000 MNT loan, which she will put with her own savings of 3,000,000 MNT, in order to purchase a new truck at 4,000,000 MNT for her husband's business.
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.