The project

Tolga runs a business in Mongolia specializing in ready-mix products for construction contractors and unique marble paint for building finishes. What sets his company apart is a machine that can create paint in any color—a significant advantage in the local construction industry, allowing for customized solutions.

The establishment of his business was made possible by the support of GSB Capital, a microfinance institution. With his first loan, he purchased land to build a small factory and invested in raw materials to start production.

Today, Tolga leads a team of six full-time employees who, through their work, are able to support their families. His company plays a crucial role in strengthening Mongolia's construction sector by creating jobs and contributing to the improvement of living standards.

By investing in GSB Capital, you support the financing of 18 Mongolian entrepreneurs.

What social return could your investment generate?

In Mongolia, small and medium-sized enterprises face significant challenges due to stringent banking requirements and a lack of government support. This makes it difficult for entrepreneurs to grow and create jobs. At the same time, the country struggles with severe air pollution, particularly in Ulaanbaatar, where over 200,000 households burn coal to heat their homes. According to a 2019 study by the Asian Development Bank, approximately 80% of the air pollution in the capital is due to this practice.

GSB Capital addresses these issues holistically. On one hand, it offers fast business loans to underserved SME entrepreneurs, enabling them to grow and contribute to the local economy. On the other hand, GSB Capital invests in a green loan program that promotes environmentally friendly heating alternatives, reducing reliance on coal and improving air quality. These initiatives not only foster economic growth but also make a significant contribution to a cleaner environment.

What financial return could your investment generate? 

• Annual interest rate of 6%. 
• 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 1,075 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