Mongolia faces an environmental reality that demands urgent action: temperatures across the country are rising nearly three times faster than the global average, accelerating desertification, severe air pollution, and soil contamination. Against this backdrop, access to responsible finance is critical, not only for supporting everyday livelihoods, but for powering practical solutions to climate vulnerability.
Introducing Business Invest Development (BID) NBFI LLC, one of Mongolia’s leading non-banking financial institutions. Founded in 2005, BID has spent over two decades delivering accessible, customer-focused financial services to low-income individuals, micro-entrepreneurs, and small-to-medium enterprises (SMEs) across both urban and rural communities.
Strong Reach and Balanced Operations
With a nationwide network of 21 branches spanning Ulaanbaatar and rural provinces, BID has disbursed approximately EUR 290 million in loans to over 508,000 clients since its inception. As of April 2026, the institution manages a Gross Loan Portfolio (GLP) of roughly EUR 28 million, serving 16,300 active clients with robust financial metrics, strong capitalization, and sound asset quality.
BID’s client outreach reflects a balanced and inclusive approach:
- Demographics: The client base comprises 88% urban and 12% rural borrowers, maintaining an equitable gender balance of 51% male and 49% female entrepreneurs.
- Portfolio Allocation: Financing is concentrated in microloans (51%) and small enterprise loans (28%), alongside consumption loans (18%) and medium enterprise loans (3%).
Embedding Climate Action into Financial Strategy
Recognizing that long-term economic stability is inseparable from environmental sustainability, BID is actively scaling its green financing activities. While green and sustainable loans currently represent 6% of BID’s total portfolio, the institution has committed to raising this share to 10% by 2030.
To achieve this, BID is embedding pragmatic ESG principles directly into its credit assessments, encouraging borrowers to adopt environmentally responsible practices.
On-the-Ground Impact: Client Stories
BID’s climate strategy comes to life through targeted investments that address Mongolia’s environmental challenges head-on:
1. Reforestation via Tree Nursery
In 2025, aligned with Mongolia’s national “One Billion Trees” initiative, BID provided a EUR 10,000 green loan to support an NGO-led tree nursery project across 10 hectares. The capital covered critical startup operations – including seedlings, labor, fuel, and field setup – to establish a self-sustaining business model where cultivated trees are sold for ongoing reforestation. With early saplings already achieving 20–40 cm of growth, BID extended a follow-on EUR 800 green loan in 2026 to fund the nursery’s expansion.
2. Circular Sanitation with Plastic Center LLC
Soil pollution remains a critical issue in urban and peri-urban regions. To combat this, Plastic Center LLC recycles waste plastic bags and materials into durable plastic septic tanks and wastewater well systems. Supported by a EUR 25,000 green loan from BID in March 2026 (under the Oxfam Credit Line 3), the company has scaled its production. Simultaneously, BID launched a Green Leasing program, enabling local households and businesses to affordably acquire these eco-friendly sanitation solutions, improving hygiene conditions while protecting local soil.
Looking Ahead
By pairing widespread microfinance reach with innovative green lending products, BID demonstrates how financial institutions in emerging markets can drive financial inclusion while actively building climate resilience for the future.
