Togtoh S., age 57, lives with his wife and three children in his own apartment in the Selenge province. His oldest daughter helps him with the business while his middle daughter is currently unemployed and his youngest son attends university in Ulaanbaatar, a capital city of Mongolia. His wife is a trader between two border cities of Russian and Mongolia.
Togtoh operates a grocery business in his town with help of his oldest daughter. Depending on sales, Togtoh procures food two times a month and in each procurement, he purchases grocery products worth between 3,000,000 and 4,000,000 Mongolian tugriks (MNT).
He has been engaged in this business since 1995 and has built a stable operation. After many years of owning this business, he has not only gained a lot of experience as a businessman but also established a large customer base. His business earnings have enabled him to buy two cars, a garage and an apartment for his family and business.
For the future, he plans to expand his business by selling clothing items based on his wife's business. His working capital has decreased due to the devaluation of Russian currency, the ruble. He also wants to purchase a car and therefore he is requesting a 3,000,000 MNT loan in order to increase his working capital for his grocery trading 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.