Incofin advised Invest in Visions disburses USD 18 million to Khan Bank in Mongolia. Through an extensive branch network and a digital platform the bank brings financial access to every corner of the country. During these challenging times for Mongolian entrepreneurs due to the pandemic, Khan Bank has only increased the support for them.
Through a network of 547 branches Khan Bank provides financial services to retail clients and micro, small and medium enterprises in even the most remote areas of the country. Small entrepreneurs struggle in Mongolia with a lack of financing, especially in rural areas. The pandemic has further exacerbated the situation.
Khan Bank, servicing over 2.5 million clients, acknowledged the challenges for their clients during this pandemic and took several actions to alleviate their problems.
A good example is Faro Consulting LLC, a language academy founded in 2015 by two young entrepreneurs. They received their first Khan Bank in 2018, which they used for the office and classrooms. The academy teaches simple yet effective methods to easily memorize English words, and offers preparations courses for English tests such as IELTS. Thanks to their unique teaching method, the sales increased; they repaid their loan and today 30 employees work for the language centre. Since the start of the pandemic Faro had to adapt and all courses moved to an online platform. Khan Bank helped them out with a second loan to support their day-to-day operations in a time when they needed it the most.
Bavlai Erdenedelger, the Deputy CEO of Khan Bank expresses how welcome the investment of Invest in Visions is. “Supporting our MSME clients during this unprecedented time is critical for Covid-19 recovery, creating jobs and boosting our economy. With this loan facility, Khan Bank is better positioned to address the long term financing needs of our clients and to strengthen their resilience. It is also a testimony for the good governance of the Bank and for the established trust of Incofin and the Invest in Visions-fund.”
The bank supported small entrepreneurs even before the start of the pandemic with non-financial assistance, such as training opportunities and business consultation. Since the start of the pandemic, Khan Bank saw the needs rising and intensified their efforts. One of the new initiatives was the launch of an online forum, where entrepreneurs can connect with consultants for marketing and financial advice.