The project

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.

Ms. Enkhtsetseg’s store grew from one to seven branches and from five to eighteen employees with GSB Capital's financial support. This allowed her to enhance her eco-friendly furniture offerings and offer services like free 3D design consultations. Looking to the future, Ms. Enkhtsetseg is committed to further growth and empowering women by creating employment opportunities, aligning with her vision of sustainable and inclusive business practices.

For SMEs like the one from Ms. Enkhtsetseg, GSB Capital offers a wide range of financial solutions, such as an eco-furniture loan. This is a loan specifically intended to purchase or produce eco-friendly furniture and promote sustainable consumption and production. 

Operating from its main office in Ulaanbaatar and a branch in Uvurkhangai province, GSB Capital delivers its services both traditionally and online. GSB Capital is regulated by the Mongolian Financial Regulatory Commission. The institution provides reliable financial services and supports sustainable development. This contributes to the growth of businesses and the welfare of the wider community.

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