Batzul G. is an energetic, single, young man who runs a vegetable sales business. He lives in a "ger", the traditional nomadic Mongolian house, at the ger district in the Mongolian capital, Ulaanbaatar. His home is situated on land owned by his brother. Since 2000, Batzul has bought a large amount of vegetables including carrots, potatoes, lettuce, beets and onions from the biggest vegetable market, "Bars", located in Ulaanbaatar. He then sells them in a local district market. He wants to invest heavily in his stock for the lunar new year. His monthly income from sales is MNT 2,400,000 to 2,600,000 (about $1,650 USD). This business gives him 20-50% profit on capital. Batzul also plants potatoes and carrots on his own land, which is located out of town.
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.