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Q: What does the higher interest rate of this project mean?
A: The project is part of a pilot program where we experiment with the conditions of projects. The higher interest rate is not due to a change in the credit rating, which remains an A. The increase in interest is not paid by the financial institution or the entrepreneur.

The family-owned business, Bayan Agt, is situated in the Bayalag Undraa market pavilion in Ulaanbaatar, the capital of Mongolia. This multifaceted shop offers customers a variety of coloured fabrics, sheets, mattresses, and towels. Although the business is thriving now, there were challenges in previous years. A loan from GSB Capital enabled them to expand their inventory, increasing sales and profits. After several microloans, the family now owns four small stores and a warehouse for their inventory. Thanks to the financial support from GSBCapital, their financial future looks promising.

GSB Capital is a non-banking financial institution in Mongolia that specialises in various traditional and online loan services. The financial institution is primarily based in the capital, Ulaanbaatar, but also has a branch in Uvurkhangai province. They provide diverse financial solutions, including business loans for SMEs and digital lending platforms. Regulated by Mongolia's Financial Regulatory Commission, GSB Capital focuses on offering reliable financial services with a strong commitment to good governance and sustainable development.

What social return could your investment generate?

In Mongolia, SMEs struggle financially due to strict bank requirements and a lack of government support, while over 200,000 households contribute to severe air pollution through coal usage. 80% of Ulaanbaatar's air pollution is attributed to households burning coal for heating, as highlighted in a 2019 Asian Development Bank study.

GSB Capital addresses these issues with express business loans, offering quick financing solutions for underserved SME entrepreneurs and a green loan program that provides eco-friendly heating alternatives to combat coal dependency. These initiatives not only spur economic growth but also address environmental concerns.

What financial return could your investment generate? 

• Annual interest rate of 8%. 
• The maturity of the loan is 24 months. 
• Your investment will be repaid in equal instalments, including the interest, every six months.
• With an investment of 1,000 euros, your expected total repayment would be 1,100 euros.

The story of GSB Capital

Established in 2010, GSB Capital operates as a non-banking financial institution in Mongolia, providing loans through both conventional methods and an online platform. The institution offers trust services, investment guidance, and online financial transactions, all conducted under the supervision of the Financial Regulatory Commission of Mongolia. GSB Capital is committed to enhancing its operations while fostering sustainable growth within the community. It prioritises delivering accessible and secure financial services to its customers. 

The spectrum of its loan services is broad and designed to accommodate small business entrepreneurs. GSB Capital is a strong financial pillar in Mongolia, dedicated to the financial well-being of entrepreneurs and contributing to the country's economic progress.

GSB Capital in numbers

• Founded in 2010 
• 103 employees
• GSB Capital is 100% owned by Shunkhlai Holding LLC
• 99% of their activities take place in the capital Ulaanbaatar