Adel is a 50-year-old man who is always cheerful in his everyday life, according to the residents of his neighborhood. It is in this neighborhood where he got married and where his first child was born. Adel is the father of 11 children. The burden is becoming heavier than ever, as he needs to cover his children's expenses in terms of living, education, and other things required by the big family.
Adel started his business long ago in order to cover the big expenses imposed by his big family. His business was initially a cafe shop that didn't require a large amount of capital except to purchase kilos of sugar and tea. This business achieved a good reputation in old Sana'a, where it is located, and many people became regulars. Adel's family life was somewhat improved by the limited income of that cafe, but Adel did not stop at this point. He had some thoughts about further enlarging his business by opening another shop next to the cafe for selling cabab, which is a publicly sold food eaten as breakfast.
Adel was in need of a loan to start the other business and visited one of Al-Amal Bank's branches. He received three loans sequentially and this had a good impact on his business and family. Adel took the fourth loan of 180,000 YER from Al-Amal in order to pay the rent of the two shops and purchase needed materials like tea, sugar, new dishes, and tables for the cabab shop.
In the future, Adel hopes to expand his business by opening a restaurant selling all types of food, not only cabab. He also hopes to build a house for his family and children.
About Al-Amal Microfinance Bank
Al-Amal reaches out to low-income micro-entrepreneurs and small business owners in Yemen with a suite of credit, savings, and insurance products tailored for Muslim borrowers. Before lending through Al-Amal, please consider the following:
1) Due to ongoing security concerns, full due-diligence of Al-Amal was conducted remotely rather than on-site. This makes Al-Amal atypical among Kiva's Field Partners, as Kiva staff have not conducted an on-site assessment. Al-Amal's assessment included in-person meetings with the top management in other, more secure locations in the Middle East.
2) Because Yemen is a new and unstable environment, there is a possibility that future loan repayments could be held indefinitely in the country for regulatory reasons, even if individual borrowers pay back their loans. As a lender to borrowers in Yemen, you accept this additional risk.
Additionally, all of Al-Amal's products are Sharia compliant and customized for its Muslim clients. Most of the loans are structured as Murabaha interest free loans. Al-Amal purchases goods for its borrowers and charges them a markup or fee. Al-Amal is also experimenting with Ijarah loans (an Islamic leasing product). For more information on Islamic microfinance, please click here.