GSB Capital 8

GSB Capital

Company

Mongolia

Country

The project

The family-owned business, Bayan Agt, is located in the Bayalag Undraa market pavilion in Ulaanbaatar, the capital of Mongolia. The shop offers a variety of fabrics, sheets, mattresses, and towels. Although the business is thriving now, it faced challenges in previous years. A loan from GSB Capital enabled them to expand their inventory, boosting sales and profits. After several microloans, the family now owns four small stores and a warehouse for their stock. Thanks to GSB Capital's financial support, their future looks promising.

GSB Capital is a non-banking financial institution in Mongolia that provides traditional and online loans to support small businesses. With branches in Ulaanbaatar and Uvurkhangai, it focuses on offering reliable financial solutions, helping businesses like Bayan Agt overcome challenges and achieve sustainable growth.

What social return could your investment generate?
In Mongolia, small and medium-sized enterprises face significant challenges due to stringent banking requirements and a need for more 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 every six months in equal instalments, including the interest.
• With an investment of 1,000 euros, your expected total repayment would be 1,075 euros.

The story of GSB Capital
GSB Capital is a non-banking financial institution established in Mongolia in 2010. It provides loans through 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 solid 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