Social Issue

Despite recent economic progress in Mongolia, rural poverty remains a significant challenge. Poverty rates are higher in rural areas due to limited economic opportunities, dependence on volatile livestock markets, and insufficient access to financial services. These conditions disproportionately affect rural families, who often lack the capital needed to invest in income-generating activities that could improve their livelihoods. However, while poverty is more prevalent in rural areas, the majority of poor people in Mongolia now live in urban centers. With two-thirds of the population residing in urban areas, more than six out of ten poor individuals are urban dwellers. By supporting microfinance institutions like Transcapital Mongolia, we aim to address these inequalities by providing productive loans tailored to the needs of their clients.

Our Response

Netri has provided a loan in local currency to Transcapital, a microfinance organization founded in 2001 that offers access to financial services in the poor suburbs of Ulaanbaatar and rural areas of Mongolia. Transcapital provides productive loans to micro-entrepreneurs, mainly in the trade and service sectors, in addition to low-income housing insulation and renovation and consumer.

Netri’s loan is exclusively aimed at supporting microloans that promote income-generating activities in traditionally underserved communities, particularly in sectors such as trade, services, and production.

Expected Social Impact

With this investment from Netri, it is estimated that Transcapital will be able to grant approximately 130 productive microloans to low-income individuals. These loans empower people to start or expand micro businesses and strengthen their resilience and reducing inequality.