Erdenechimeg S. is a single mother who lives with her son in her own house in the "ger" district in Ulaanbaatar, the capital city of Mongolia. (A ger is a traditional nomadic Mongolian home.) Since she began selling used handbags at Narantuul, the biggest outdoor market in Mongolia, she has bought a place to live and a retail stall at the Narantuul market for her brother. She is one of XacBank's (Kiva's partner microfinance institution in Mongolia) best borrowers, with a sterling credit history for the past five years. Erdenechimeg is a very responsible person. Her goal is to expand her own house. She wants this loan to buy more used handbags and leather bags (used handbags come from South Korea and are sold by the kilogram) to increase her inventory.
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.