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Mongolia

LOANS BRING HOPE TO FAMILIES AND THEIR CHILDREN

WE HELP MONGOLIAN FAMILIES GET THE RESOURCES THEY NEED TO CARE FOR THEIR CHILDREN. THROUGH OUR SMALL LOANS WE OFFER ACCESS TO FINANCE, AND WITH IT, THE OPPORTUNITY TO PROVIDE A BETTER FUTURE FOR CHILDREN IN MONGOLIA.

We are a financial institution in Northern Asia that provides financial services to people who would otherwise have little or no access to credit. The wellbeing of children, families and communities in Mongolia is our main focus. We serve the country’s poorest. We help them start or grow their own businesses through loans of just a few hundred dollars.

Many Mongolian families rely heavily on government assistance and struggle to provide even the most basic needs for their children.  When families join local cooperatives in their communities, they can take out loans with the collective support of their group members. This gives families living in Mongolia the possibility to bring themselves out of poverty. Our clients use their loans to begin or build businesses that provide regular income. With this financial security, our clients can feed their children, pay for their medicine and send them to school. Our small loans unlock opportunities for families who would otherwise go without.

Working in Mongolia

Mongolia sits atop a vast amount of untapped natural resources. With China and Russia as its two powerful neighbours, Mongolia is positioned to become an exporting powerhouse. The sparsely populated nation is already growing fast, with its GDP expected to double by 2015.

The percentage of people living below the poverty line in Mongolia is 36.1%. In surrounding countries, this figure ranges from 8 – 16%.  Poverty rates are dropping in urban centres, but in rural areas the country is seeing a three per cent increase, reaching 46.6 per cent.

While there are tens of thousands of active creditors in Mongolia, they operate mostly in urban areas and target the wealthy. There is great demand for credit from thousands of urban and rural poor who are denied access to finance. This is where we step in.

 

Awards and Ratings

  • Gold Certificate of Transparency from Mix Market in 2007
  • C++ from Planet Rating in 2009
  • Top 10 NBFI from the Government of Mongolia in 2011

    Future Innovation

    We are a microfinance institution with bold efforts and large regional impact. We search for innovative ways to reach more poor people with our financial services. Some of our initiatives and programmes include:

    • The development of an ‘innovation team’, who will focus on defining, testing and implementing changes to improve financial and social bottom lines. Their work translates to greater efficiencies and smaller average loan sizes.
    • The opening of additional rural branches, primarily located in development areas where World Vision works.

    Client Success Story

    TWO GENERATIONS OF DRESSMAKERS

    “When I see smile on people’s face after they receive the dress I made for them, it inspires me to keep going on. It is the best feeling” beams dressmaker Gerelt-Od.L, a 31 year old, mother of four. She lives with her husband Buyankhuu 37, three daughters Burenjargal 14, Burneebayar 12, Naransolongo1 and son Bilegsaikhan 9. Gerelt-Od has been running dressmaking shop at Urt Tsagaan Street in the central Ulaanbaatar for 5 years now, since she bought her first sewing machine with VisionFund loan. She makes Mongolian traditional dress-deel, dancing costumes, and other traditional accessories. “When you do the job you like, things are easy” says Gerelt-Od. Yet things were not as simple back in the days when her family first moved to Ulaanbaatar from countryside several years ago.

    Gerelt-Od’s family first came to Ulaanbaatar from countryside, hoping for better opportunities. They sold their livestock, their only source of income, as well as their ger (Mongolian traditional housing) when they left countryside and came to the capital city. The family then bought new ger in Ulaanbaatar and built it in a relative’s yard. Lacking the education and skills to find a job in the capital city, Gerelt-Od and her husband tried to do any job they could find. They even tried to run a relative’s grocery store for while, yet Gerelt-Od wanted to have her own business.


    Things changed when her mother Erdenechimeg, 54, encouraged her develop her dressmaking skills and start a business together. Erdenechimeg had started making dresses after attending World Vision Dressmaking Course, and bought her sewing machine with VisionFund loan. Following her mother’s footsteps, Gerelt-Od decided to apply for a loan. “I was worried about getting loan, if it requires many documents or collateral, but it was so easy. Loan after loan, my life improved” talks Gerelt-Od happily. With her first loan of 250USD she bought sewing machine, and opened a dressmaking shop with her mom. With her second and third loans, she bought new refrigerator, vacuum cleaner and washing machine for her home. Gerelt-Od’s family is now planning to move from their parents’ yard, and build their own house on the land they acquired few months ago.

     “My children are very talented, so I try to encourage them to pursue their hobbies. Now that my business is well, our family is able to afford to send our children to the club they like. Burneebayar goes to gymnastics and Chinese club, and Bilegsaikhan goes to mathematics and Chinese club. He even draws well” says Gerelt-Od proudly of her children. Burneebayar wants to become a model in future, while the eldest Burenjargal wants to study economics.

    Gerelt-Od is planning to attend the Tsagaan sar fair in January, the annual fair showcasing national manufacturers’ products during Tsagaan Sar: the biggest national holiday. “Our shop is doing so well. We are busy all the time with orders, so I am planning to hire few people and form a company. People already came to me asking for a job” says Gerelt-Od excitedly. Her wish is to send their children to university and see them grow to be good people who contribute to Mongolia.

    Management Details

    MFI Structure

    Chee-chin-Hoe_thumbnail

    Mr Chann Savoeung

    Chief Executive Officer 

    Contact the MFI