Gungaabuu U., 35 years old, lives with his wife and four children in the Bayanhongor province of Mongolia. The family lives together in a ger, a traditional Mongolian nomadic tent, in his brother's enclosure. All of his four children attend a local school and his wife is currently unemployed. Gungaabuu supports his entire family by operating a taxi service in his town. At first, he started a coal and firewood sales business in 2006 and stopped in 2009 due to bad sales. Since May 2010, he has been managing a taxi service after purchasing a car. For the future, he hopes to buy his own enclosure and grocery shop. He is requesting a 300,000 MNT loan in order to purchase necessary tools and parts, such as 4 tires, for his car.
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.