Group Loan for Rural Poverty Reduction

The loan is disbursed to voluntary groups of poor or single female-headed households who attended the trainings conducted by Mongolian Women’s Federation.  The purpose of the loan is to improve the livelihood of group members by financing the purchase of fixed assets or working capital needed for their businesses. 

Target areas: Arkhangai, Bulgan, Khuvsgul, Khentii aimags

Loan terms:                                
Amount:           Up to MNT 1,000,000 for a group member
                         Up to MNT 10,000,000 for a group
Interest rate:   1.4% monthly and may be decreased by up to 0.2 points/
Term:               Up to 24 months

Eligibility requirements for groups:

• In order to be part of the Rural Poverty Reduction Program loan, voluntary group must attend the training organized by Mongolian Women’s Federation on business plan development, group forming and business management.
• Must place term deposit of the group at Khan Bank under the group leader’s name for 1-3 months

Eligibility requirements for group members:

• At least 6-month experience in running the micro business;
• Have a business idea that can be implemented in the area where the bank branch/sub branch is located, and supporting business plan shall be submitted.
• A member recommended by the group shall have been the member at least 3 months, and possess detailed knowledge about the group. In addition, the proposed project must be 100% supported by group leader and all other members.