Passport Series: Mongolia: Borrower Profile

This is the last of our Passport Series for December! This post was written by Kiva Fellow, Amber Barger - the photos were also provided by her.

The first generation of Mongolian entrepreneurs is now entering their country’s transitional economy. They are the first Mongolians to grow up entirely in today’s nascent, market-oriented economy, having only transitioned in 1991. Fifty-nine percent of Mongolia’s three million people are under the age of thirty. This relatively young and growing population is emerging into an economy much different than their parents’ and grandparents’. One such young Mongolian entrepreneur is Kiva borrower, Bayarjargal.

Bayarjargal is a 22 year old, mother of one, pursuing her business aspirations in the Bayanhongor province of western Mongolia. Her work as a beautician, business entrepreneur and mother captures a similar snapshot to most of Mongolia’s young employed persons. Following her dream of opening several beauty salons throughout the countryside communities, Bayarjargal has pursued beautician classes in the capital city and has worked hard to procure equipment to expand her business. Her modest income is directed towards furthering her goals and providing for her child and mother, with whom she lives with in a small ger.



Bayarjargal’s youthful flexibility and entrepreneurship has helped her support and provide a bright future for her family. Her current beauty salon is under renovation, so in the mean time, Bayarjargal is applying her culinary skills to sell food in the market nearby. Despite the small interruption in her primary salon work, Bayarjargal remains optimistic and is adapting to provide a continuing income for her family. This tenacity and flexibility is very typical for many Mongolians, as they have worked hard to transition into the Mongolian economy of present.

Kiva loans have provided much of the opportunity that Bayarjargal uses to pursue her dream of one day owning a series of beauty salons. Her business loan has helped increase her working capital and provided the necessary funds to purchase salon equipment. Obtaining equipment is her main obstacle towards broader expansion, so Bayarjargal has also been seeking used equipment from larger and more modern salons in the capital city, Ulaanbaatar. She takes great pride in the services she provides, and enjoys seeing the contentment from beauty care her customers normally would not be able to find in rural Mongolia.


Bayarjargal is just one of many young Mongolians striving in business entrepreneurship. Like her, many Mongolians are not only looking out for their financial future, but also the economic support of friends and family. Given the difficult obstacles that come with economic mobility, Mongolians are learning to adapt, strive and branch out towards new areas of small business. The ingenuity of modern Mongolia is a much different image than the country of twenty years ago. The country is expanding with unbridled enthusiasm and Kiva loans are helping transform this enthusiasm into obtainable goals in a dynamic, expanding Mongolia.


Happy Holidays from the coldest capital in the world, Ulaanbaatar, Mongolia!

Kiva's Social Enterprise Lab

Kiva will be hosting their very first Social Enterprise Lab!

When: Wednesday, August 11th, 12:30PM

Where: The Hub SoMa: 901 Mission Street, San Francisco, CA

The Social Enterprise Lab will be a chance for those interested in learning and exploring the pitfalls and triumphs of early stage organizations. Whether you are an avid Kiva Lender already, or are just interested in learning more, this is a great opportunity for you to connect with others trying to do good in the world.

The first topic will include learnings from the Kiva model [years 1-4], interesting new models created by Kiva Fellow Alumni [SaveTogether.org, RelayRides.com, Ahkun.org, Artisans4Hope.org, and others].

No need to pre-register, we hope to see you at The Hub SoMa on August 11th!

Become a Kiva Fellow!

The next Kiva Fellows application deadline is coming (June 30th)! Training for this Kiva Fellows class will take place in October 2010.

The Kiva Fellows Program offers individuals a rare opportunity to travel abroad and witness firsthand the impact and realities of microfinance, by working directly with a host microfinance institution (MFI). The Kiva Fellow is an unpaid, volunteer based position designed to increase Kiva's impact and to offer participants a unique insider experience. Past participants have found the fellowship to be a great first step in a career in microfinance or international development.

Please click here to learn more about the program and application process. Also, check out the video below about Kiva Fellow Rob Cavese and his experiences in the Phillipines and Tajikistan.

This project was created pro bono by Micro-Documentaries.

Apply to become a Kiva Fellow today!

When Cows Attack (with video)!

By Kevin Chaissan

Kiva Fellows 10th Class
Juhudi Kilimo, Kenya

Juhudi Kilimo CFO: "Kevin, when you’re out in Litein, make sure you ear-tag at least one cow for our Micro Insurance program.

Me: "Ummm yea, I may pass on that one, but I’ll think about it."



Microfinance… To most people this word is synonymous with providing small loans to very low-income entrepreneurs. But microfinance is so much more than that. It involves Microcredit, Microsavings, and our topic today, Micro Insurance. Most people are surprised to learn that many of Kiva’s Field Partners offer these different services to clients, and I admit that I did not really understand all of this before arriving in Nairobi.

Micro Insurance at Juhudi Kilimo is one of the most important services offered to clients, and because of recent competition, premiums keep getting lower. As of now, the cost to insure a dairy cow is 4% of the price of the cow, per year, and is mandatory for clients. Since there have been over 5,000 loans in recent years for dairy cows, this is big business for Juhudi Kilimo.

Juhudi works with C.I.C. Insurance in Kenya, the current market leader in Micro Insurance services. Loan officers here do the initial assessment after a client purchases a cow, and Juhudi submits the forms to C.I.C. along with the premium payment. In the event that a cow dies, a Juhudi loan officer will assist in the autopsy process with a licensed Agrovet owner and handle all the paperwork and payments with the insurance company.

Another interesting Micro Insurance service that Juhudi Kilimo provides is mandatory life insurance for the client. The premium is set at 1% of the loan amount, and covers the outstanding loan balance in the event a client passes away.

All of these services are designed to protect clients and their income-producing assets. In the event of an unexpected death, a client or their family is protected and they are not forced to shoulder a burden they are incapable of paying. This keeps the default rate low, and also provides a relief system where no cycle of debt is necessary to pay off outstanding loan balances when tragedy occurs.

The video above is my rather weak attempt at ear-tagging a Juhudi cow. It normally takes only 2-3 people to restrain and tag a cow, but this was no ordinary cow! We also had a problem where C.I.C. sent us new tags that do not seem as strong plastic, making the whole process much more strenuous than need be. Thankfully this issue has been addressed and new, better tags are being issued again for future tagging. Yea, I know, excuses excuses, but I’m sticking with that reasoning.

And in case anyone is wondering, I will NOT be attempting to ear-tag any more cows! My first, and last, attempt was sufficient for me, and I’ll leave it to the clients or loan officers from here on out to perform the task, as I’m quite happy being an interested observer. I would also like to point out that in almost all cases, the cow does not suffer during this process. It is quite similar to a human having an ear-piercing, where there will obviously be a bit of discomfort, but it is short-lived and not as painful as it may seem.

Kevin Chaissan is a member of the 10th class of Kiva Fellows, stationed in Kenya, working with Juhudi Kilimo. He is seeking to help move the new Field Partner from Pilot to Active stage in order to increase their funding on Kiva and maximize their impact on poor, rural farmers across Kenya looking to gain access to capital.

Kevin's story was originally posted on "Kiva Stories from the Field" on March 16, 2010. Please click here to see the original post.

Kiva Stories from the Field: Mongolia goes green!!!

By Beth Ritchey, Kiva Fellows 10th Class, Ulaanbaatar, Mongolia

Yes, it might be the dead of winter in Mongolia, with temperatures hovering around -30 degrees Fahrenheit, but the loan products here have been turning green. Thanks to the hard work of the Eco Products Team at XacBank in Mongolia, Kiva lenders saw an introduction of 3 new types of personal consumption ‘green loans’ in December 2009:

• Energy Efficient Stoves

• Ger (yurt) covers

• Energy efficient fuel

Currently around 60% of the population of Ulaanbaatar (the capital of Mongolia) lives in gers (a yurt-like structure heated by a central stove). Pollution is a big problem in Ulaanbaatar, especially in the winter when pollution levels increase substantially due to the extra coal and wood burned in the gers to keep warm. The World Bank estimates that 60% of the pollution in the city during the heating season is attributed to coal burned in the Ger Districts*.

That's not fog! The pollution in Ulaanbaatar


XacBank recognized this problem and its connection with poverty. Most families spend up to 40% of their incomes, roughly a $140 per month, in the winter time on heating fuel alone. This money most often comes from cuts in nutrition and health budgets*. To address this relationship between pollution and poverty, XacBank started offering new loans to make eco products financially accessible to the residents of the Ger Districts. XacBank currently offers 3 types of green loans for personal consumption: energy efficient stoves, ger covers and energy efficient fuel.

The energy efficient stoves were developed and tested by GTZ, an international enterprise for sustainable development run by the German Government. The stoves are lined with a type of brick similar to that found in a pottery kiln and are designed to circulate and retain heat for longer periods than traditional stoves. This in turn reduces fuel consumption by more than 60% each month and helps to reduce a family’s air pollution.

Energy efficient stove

Ger covers are essentially large insulating blankets composed of three separate layers that wrap the entire outside of the ger. The specialized insulation helps to keep heat within the ger and results in a 50% reduction in fuel burned each month. The Ger covering was designed by the United Nations Development Program, but is produced locally in Mongolia. As an additional note, XacBank provided start-up loans to local producers to increase production of both the stove and the ger cover.

Ger blanket

The third XacBank Eco loan is for energy efficient fuel. Borrowers can obtain a loan to buy fuel from producers who create efficient fuels from things like compacted sawdust and gasified coal. The efficient fuels are more expensive than traditional fuels but they have less of a negative impact on the environment by burning longer and producing less carbon output. Overall, the price difference between clean fuels and brown coal is made up through clients using less fuel to achieve the same heating results.

Energy efficient fuel - sawdust briquettes

The majority of XacBank’s green loans are posted in the fall, as Mongolians prepare their gers for winter and stock up on fuel. To date, XacBank has posted 22 green loans on Kiva and plans to do more in the future, so keep an eye out for new eco-loans coming soon! In the meantime you can also check out XacBank’s carbon partnership with yurtcozy which is helping to make the program sustainable.

*Energy Efficient and Cleaner Heating in Poor, Peri-urban Areas of Ulaanbaatar, World Bank Consultant Summary Report on Activities, October 2008

This story was originally posted on "Kiva Stories from the Field" on February 23, 2010. Please click here to see the original post.

Maximize the Impact of $25: Become a Kiva Fellow

Love Kiva? Want to do more on the ground? We are looking for qualified people who want to get into the field to help make the connection even stronger.

Kiva Fellows are short-term volunteers who work with a specific Kiva field partner for three months or more. They help to bridge the gap between Kiva lenders and our field partners throughout the world sending stories and data back to Kiva HQ and the lending community. Kiva Fellows possess travel experience, language skills, enthusiasm for Kiva, and a flexible personality – all of which allow them to conduct field work that strengthen connections between stakeholders in order to alleviate poverty.

Last week, Kiva hosted trainees for the tenth class of Kiva Fellows here at our headquarters in San Francisco. This class will be heading to 51 field partners in 31 countries. In the two years that the Kiva Felllows Program has existed, we have sent 254 fellows from 25 different countries to every country in which Kiva operates except for Iraq. Take a look at the map below for KF10.

(light green denotes fellows trained in KF9)

The Kiva Fellows Program is a vital and strategic asset to Kiva in fulfilling its mission. The fellows are an adaptable, scalable and sustainable resource to innovate at Kiva. Kiva Fellows have helped our field partners to utilize Kiva’s lending platform more effectively and efficiently to enable the organizations rapid growth and to get more funds from lenders to entrepreneurs.

We are still accepting applications for KF11 as well as future classes. We encourage you to apply. For more information and our online application please go to www.kiva.org/fellows

Kiva Fellows Program Comes to Boston - Tuesday 12/1

Calling all Boston-area Kiva supporters!

The director of the Kiva Fellows Program, JD Bergeron, will be hosting an event with one of the KFP Coordinators and several former Kiva Fellows at MIT campus in Cambridge this Tuesday, December 1st. If you're in the Boston area, this is your chance to ask questions about Kiva or the Kiva Fellows Program to Kiva staff in a face-to-face, informal setting.

The evening will begin with a 40-minute presentation and Q&A on MIT campus in Cambridge, followed by networking and drinks at the Muddy Charles Pub. Here are the details:

When: Tuesday, Dec. 1st from 6:00-8:00pm
Where: The Sloan Building, room 175 (E52-175 ), MIT Campus (http://whereis.mit.edu/) followed by drinks at the Muddy Charles Pub (http://web.mit.edu/muddy/)
Who: Kiva staff, former Kiva Fellows, Kiva supporters, lenders, and friends
Why: Anyone interested in learning more about Kiva, hearing about the Kiva Fellows Program, or having your Kiva questions answered

The Sloan Building and the Muddy Charles Pub are approximately a 2-minute walk from the Kendall/MIT T stop on the red line.

If you have any questions about the event, please email julie@kiva.org. We hope you'll join us!