Mohammed is a 30-year-old man living in Sana'a. He is a father of three children. Two of the children are still in primary school and the youngest is two years old. Mohammed completed only primary school and could not go ahead with his study due to the difficult living conditions he faced.
Mohammed's business is a grocery store that he started 14 years ago with limited capital and income. By sticking with his business, which is the main source for feeding his family, Mohammed was able to attract new clients. This had an impact on expanding his business capital and income. Mohammed was happy for the increase in clients but on the other hand, Mohammed faced a financial challenge because he was not able to meet the demands of his clientele.
Mohammed took a loan of 400,000 YER from Al Amal Bank in order to meet the demands of his clients by providing the needed grocery goods. It is worth mentioning that Mohammed is one of the trusted clients of AMB, as this loan is the third loan to be disbursed to him.
In the future, Mohammed hopes to expand his business and capital by opening another grocery as well as purchasing a truck, which he will use to pick up goods from wholesalers to deliver to his grocery. He also is saving to enroll his youngest child in a private school to guarantee a good education.
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.